Marathon Oil Earnings Cheat Sheet: Twofold Profit Pop Year Over Year

S&P 500 (NYSE:SPY) component Marathon Oil Corporation (NYSE:MRO) reported net income above Wall Street’s expectations for the first quarter. Marathon Oil Corporation is an oil (NYSE:USO) and natural gas (NYSE:UNG) exploration and production company with operations in the North America, Africa and Europe.

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Marathon Oil Earnings Cheat Sheet for the First Quarter

Results: Net income for the oil and gas refining and marketing company rose to $996 million ($1.39/share) vs. $457 million (64 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose to $21.07 billion.

Actual vs. Wall St. Expectations: MRO reported adjusted net income of of $1.65/share. By that measure, the company beat the mean estimate of $1.44/share. Estimates ranged from $1.27 per share to $1.83 per share.

Quoting Management: “Marathon delivered another quarter of strong operations across all segments, positioning the Company to capture higher commodity prices and margins and achieve solid financial results. These results further highlight the strength of our Upstream and Downstream businesses as we continue to progress toward an expected effective date of June 30 for the spin-off of Marathon Petroleum Corporation, creating two independent, highly focused energy companies,” said Clarence P. Cazalot Jr., Marathon’s president and CEO.

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 35.8%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 54.8% from the year earlier quarter.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 98.9% and in the third quarter of the last fiscal year, the figure rose 68.5%.

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 Performance: Shares of MRO are trading at $52.47, down over 1.5% from the previous closing price of $53.41.


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