Marathon Oil Earnings: Here’s Why Investors are Selling Stock Now

Marathon Oil Corporation (NYSE:MRO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.2%.

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Marathon Oil Corporation Earnings Cheat Sheet

Results: Net income decreased -41.35% to $322 million (55 cents per diluted share) in the quarter versus a net gain of $549 million in the year-earlier quarter.

Revenue: Rose 11.32% to $4.24 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Marathon Oil Corporation reported adjusted net income of 55 cents per share. By that measure, the company missed the mean analyst estimate of $0.67. It beat the average revenue estimate of $3.93 billion.

Quoting Management: “Last year, the first full year for Marathon Oil as an independent Exploration and Production (E&P) company, was marked by outstanding execution in our domestic resource plays, continued safe and reliable operations in our base assets and entry into new, high-potential exploration opportunities,” said Clarence P. Cazalot Jr., Marathon Oil’s chairman, president and CEO.

Key Stats (on next page)…

Revenue increased 1.9% from $4.16 billion in the previous quarter. Net income decreased 28.44% from $450 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.82 to a profit $0.78. For the current year, the average estimate has moved down from a profit of $2.66 to a profit of $2.58 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)