S&P 500 (NYSE:SPY) component Marathon Oil Corp (NYSE:MRO) will unveil its latest earnings on Tuesday, August 2, 2011. Marathon Oil Corporation is an oil and natural gas exploration and production company with operations in the North America, Africa and Europe. Exxon Mobil Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter>>
Marathon Oil Corp Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 99 cents per share, a decline of 10.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.54. Between one and three months ago, the average estimate moved up, but has dropped from $1.78 during the last month. For the year, analysts are projecting profit of $4.26 per share, a rise of 16.7% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 23 cents, reporting net income of $1.65 per share against a mean estimate of profit of $1.42 per share.
Wall St. Revenue Expectations: On average, analysts predict $15.16 billion in revenue this quarter, a decline of 18.4% from the year ago quarter. Analysts are forecasting total revenue of $66.42 billion for the year, a decline of 9.8% from last year’s revenue of $73.62 billion.
Analyst Ratings: Analysts are bullish on Marathon Oil as 10 analysts rate it as a buy, none rate it as a sell and 10 rate it as a hold.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 31.1%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 41% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold while it rose 98.9% in the fourth quarter of the last fiscal year and 68.5% in the third quarter of the last fiscal year.
The company boosted its gross margin by six percentage points in the in the first quarter. Revenue rose 31.9% while cost of sales rose 23.2% to $17.64 billion from a year earlier.
Competitors to Watch: Chevron Corporation (NYSE:CVX), ConocoPhillips (NYSE:COP), Hess Corp. (NYSE:HES), Exxon Mobil Corporation (NYSE:XOM), BP plc (NYSE:BP), TOTAL S.A. (NYSE:TOT), Statoil ASA (NYSE:STO) and Murphy Oil Corporation (NYSE:MUR).
Stock Price Performance: During May 31, 2011 to August 1, 2011, the stock price had fallen $2.24 (-7%) from $32.88 to $30.64. The stock price saw one of its best stretches over the last year between January 5, 2011 and January 13, 2011 when shares rose for seven-straight days, rising 15.1% (+$3.38) over that span. It saw one of its worst periods between March 3, 2011 and March 10, 2011 when shares fell for six-straight days, falling 7.7% (-$2.46) over that span. Shares are up $6.39 (+17.26%) year to date.
(Source: Xignite Financials)