Marathon Oil Corp Earnings: Revenues and Net Income Fall

S&P 500 (NYSE:SPY) component Marathon Oil Corporation (NYSE:MRO) posted a decrease in profit as revenue declined. Marathon Oil is an oil and natural gas exploration and production company with operations in North America, Africa, and Europe.

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Marathon Oil Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Marathon Oil Corporation fell to $549 million (78 cents per share) vs. $706 million (99 cents per share) a year earlier. This is a decline of 22.2% from the year earlier quarter.

Revenue: Fell 80.5% to $3.81 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MRO fell short of the mean analyst estimate of 85 cents per share. It beat the average revenue estimate of $2.91 billion.

Quoting Management: “2011 was truly a landmark year for Marathon Oil. We completed the spin-off of our downstream business into an independent company and closed a major acquisition giving us a top-five acreage position in the core of the Eagle Ford Shale, the premier U.S. liquids resource play. With our highest level of rig activity in many years, Upstream production available for sale increased seven percent year over year, excluding Libya,” said Clarence P. Cazalot Jr., Marathon Oil`s chairman, president and CEO.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 41.8% from the year earlier quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 26 cents in the third quarter and by 3 cents in the second quarter.

Revenue has fallen for the past three quarters. In the third quarter, revenue declined 80.1% to $3.66 billion while the figure fell 79.9% in the second quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 86 cents per share, down from 91 cents ninety days ago. At $3.84 per share, the average estimate for the fiscal year has fallen from $3.96 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com