Newfield Exploration Co. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Revenue Growth

S&P 500 (NYSE:SPY) component Newfield Exploration Co. (NYSE:NFX) reported higher profit for the third quarter as revenue showed growth. Newfield Exploration acquires and explores natural gas and crude oil properties in the U.S. and abroad.

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Newfield Exploration Earnings Cheat Sheet for the Third Quarter

Results: Net income for the oil and gas company rose to $269 million ($1.99 per share) vs. $161 million ($1.20 per share) in the same quarter a year earlier. This marks a rise of 67.1% from the year earlier quarter.

Revenue: Rose 39.9% to $628 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NFX reported adjusted net income of $1.04 per share. By that measure, the company fell short of mean estimate of $1.16 per share. It fell short of the average revenue estimate of $702.3 million.

Quoting Management: “We will simplify our game plan in 2012 and ensure that our best people and projects are aligned,” said Lee K. Boothby, Chairman, President and CEO. “We are driving oil growth from fewer projects andI am confident in our ability to deliver and am excited about the opportunities ahead of us.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 28.9%, with the biggest boost coming in the most recent quarter when revenue rose 39.9% from the year earlier quarter.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 5 cents with net income of $1.02 versus a mean estimate of net income of $1.07 per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.27 per share, a drop from $1.47. For the fiscal year, the average estimate has moved down from $4.82 a share to $4.40 over the last ninety days.

Competitors to Watch: Harvest Natural Resources, Inc. (NYSE:HNR), Hess Corp. (NYSE:HES), Anadarko Petroleum Corp. (NYSE:APC), EOG Resources, Inc. (NYSE:EOG), Noble Energy, Inc. (NYSE:NBL), Devon Energy Corporation (NYSE:DVN), GeoResources, Inc. (NASDAQ:GEOI), Stone Energy Corporation (NYSE:SGY), Chesapeake Energy Corp. (NYSE:CHK), and Carrizo Oil & Gas, Inc. (NASDAQ:CRZO).

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(Source: Xignite Financials)

 

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