Newfield Exploration Co. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Newfield Exploration Co. (NYSE:NFX) will unveil its latest earnings on Thursday, July 21, 2011. Newfield Exploration Co. acquires and explores natural gas and crude oil properties in the U.S. and abroad.

Newfield Exploration Co. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.07 per share, a rise of 0.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.18. Between one and three months ago, the average estimate moved down, but it has been unchanged at $1.07 during the last month. For the year, analysts are projecting net income of $4.92 per share, a rise of 9.6% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 98 cents per share against a mean estimate of net income of 91 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 9 cents.

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Wall St. Revenue Expectations: On average, analysts predict $658.4 million in revenue this quarter, a rise of 47% from the year ago quarter. Analysts are forecasting total revenue of $2.74 billion for the year, a rise of 45.7% from last year’s revenue of $1.88 billion.

Analyst Ratings: Analysts are bullish on this stock with 17 analysts rating it as a buy, one rating it as a sell and six rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 30.6%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 56.1% from the year earlier quarter.

Newfield Exploration’s loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $17 million in the first quarter, a profit of $22 million in the fourth quarter of the last fiscal year, a profit of $161 million in the third of the last fiscal year and a profit of $96 million in the second quarter of the last fiscal year.

The company’s gross margin shrank by 10 percentage points in the in the first quarter. Revenue rose 19% while cost of sales rose 78.3% to $164 million from a year earlier.

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).

Stock Price Performance: During June 16, 2011 to July 15, 2011, the stock price had risen $6.04 (9.5%) from $63.74 to $69.78. The stock price saw one of its best stretches over the last year between September 22, 2010 and October 1, 2010 when shares rose for eight-straight days, rising 10.3% (+$5.47) over that span. It saw one of its worst periods between August 17, 2010 and August 26, 2010 when shares fell for eight-straight days, falling 10.7% (-$5.62) over that span. Shares are down $2.33 (-3.2%) year to date.

(Source: Xignite Financials)

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