S&P 500 (NYSE:SPY) component Murphy Oil Corporation (NYSE:MUR) reported its results for the first quarter. Murphy Oil is an oil and gas exploration and production company with refining and marketing operations in the U.S. and the United Kingdom.
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Murphy Oil Earnings Cheat Sheet for the First Quarter
Results: Net income rose to $290.1 million ($1.49 per share) vs. $268.9 million ($1.38 per share) in the same quarter a year earlier. This marks a rise of 7.9% from the year-earlier quarter.
Revenue: Rose 11.5% to $6.99 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Murphy Oil Corporation fell short of the mean analyst estimate of $1.52 per share. It fell short of the average revenue estimate of $7.21 billion.
Quoting Management: David Wood, Murphy’s President and Chief Executive Officer, commented, “The divergence in North American oil and natural gas prices during the first quarter was quite extreme. Although oil prices remain strong in the early days of the second quarter, natural gas prices in North America have further softened during the shoulder months in the spring. Our Company has made a good start with exploratory drilling in early 2012.”
The company has fallen short of estimates for two consecutive quarters. In the fourth quarter of the last fiscal year, it missed expectations by 10 cents with net income of $1.31 versus a mean estimate of net income of $1.41 per share.
The company reported a profit last quarter after being in the red the prior quarter. In the third quarter of the last fiscal year, the company booked a net loss of $406.1 million, or a loss of $2.09 per share.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to $1.55 per share from $1.49. Over the past three months, the average estimate for the fiscal year has climbed from $5.98 per to share to $6.32.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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