Newfield Exploration Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Newfield Exploration (NYSE:NFX) will unveil its latest earnings on Tuesday, October 23, 2012. Newfield Exploration acquires and explores natural gas and crude oil properties in the U.S. and abroad.

Newfield Exploration Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 51 cents per share, a decline of 51% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 50 cents. Between one and three months ago, the average estimate moved down. It has risen from 48 cents during the last month. For the year, analysts are projecting profit of $2.54 per share, a decline of 36.2% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 15 cents, coming in at net income of 61 cents per share against a mean estimate of profit of 64 cents. The company topped expectations in the first quarter.

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A Look Back: In the second quarter, profit fell 38.4% to $135 million ($1 a share) from $219 million ($1.62 a share) the year earlier, missing analyst expectations. Revenue rose 1.1% to $628 million from $621 million.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $4 (13.1%), from $30.47 to $34.47. The stock price saw one of its best stretches over the last year between July 10, 2012 and July 19, 2012, when shares rose for eight straight days, increasing 15.8% (+$4.46) over that span. It saw one of its worst periods between May 1, 2012 and May 18, 2012 when shares fell for 14 straight days, dropping 22.1% (-$7.99) over that span.

Wall St. Revenue Expectations: On average, analysts predict $643.7 million in revenue this quarter, a rise of 2.5% from the year-ago quarter. Analysts are forecasting total revenue of $2.65 billion for the year, a rise of 7.3% from last year’s revenue of $2.47 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 39.9% in the third quarter of the last fiscal year, 28.2% in the fourth quarter of the last fiscal year and 24.4% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are 11 out of 20 analysts surveyed (55%) rating Newfield Exploration a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.6 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.

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

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