Murphy Oil Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Murphy Oil (NYSE:MUR) will unveil its latest earnings on Wednesday, October 31, 2012. Murphy Oil is an oil and gas exploration and production company with refining and marketing operations in the U.S. and the United Kingdom.

Murphy Oil Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.20 per share, a decline of 30.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.19. Between one and three months ago, the average estimate moved down. It has risen from $1.10 during the last month. Analysts are projecting profit to rise by 0.2% compared to last year’s $5.69.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the second quarter, the company reported profit of $1.52 per share versus a mean estimate of net income of $1.33 per share. In the first quarter, the company missed estimates by 3 cents.

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Stock Price Performance: Between August 29, 2012 and October 25, 2012, the stock price had risen $7.73 (14.8%), from $52.12 to $59.85. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 17.4% (+$7.63) over that span. It saw one of its worst periods between May 1, 2012 and May 15, 2012 when shares fell for 11 straight days, dropping 16.6% (-$9.28) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.35 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

A Look Back: In the second quarter, profit fell 5.2% to $295.4 million ($1.52 a share) from $311.6 million ($1.60 a share) the year earlier, but exceeded analyst expectations. Revenue fell 17.3% to $7.19 billion from $8.69 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4.8% in the first quarter and dropped again in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $8.49 billion in revenue this quarter, a decline of 2.6% from the year-ago quarter. Analysts are forecasting total revenue of $29.09 billion for the year, a rise of 4.8% from last year’s revenue of $27.75 billion.

Analyst Ratings: There are mostly holds on the stock with eight of 11 analysts surveyed giving that rating.

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

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