Oil and gas producer ConocoPhillips (NYSE: COP) will be announcing earnings results tomorrow before market hours. Here’s what to look for.
ConocoPhillips beat analysts’ revenue expectations last quarter, reporting revenues of $14.19 billion, down 3.7% year on year. It was a satisfactory quarter for the company, with a significant miss of analysts’ EPS estimates. It reported 1.12 million oil production, up 4.2% year on year.
Is ConocoPhillips a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ConocoPhillips’s revenue to decline 16.2% year on year, a reversal from the 18.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ConocoPhillips has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ConocoPhillips’s peers in the upstream & integrated segment, some have already reported their Q1 results, giving us a hint as to what we can expect. World Kinect delivered year-on-year revenue growth of 2.5%, beating analysts’ expectations by 10.4%, and Noble Corporation reported a revenue decline of 10.2%, topping estimates by 6.8%. World Kinect traded up 10.9% following the results while Noble Corporation was also up 8.2%.
Read our full analysis of World Kinect’s results here and Noble Corporation’s results here.
Investors in the upstream & integrated segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. ConocoPhillips is down 4.8% during the same time and is heading into earnings with an average analyst price target of $140.12 (compared to the current share price of $125.69).
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