ConocoPhillips Increases Sales but Misses Estimates on Earnings

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 24, 2013 at 12:00AM
Other

ConocoPhillips (NYSE: COP) filed its 10-K on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ConocoPhillips crushed expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins increased, net margins contracted.

Revenue details
ConocoPhillips reported revenue of $16.37 billion. The four analysts polled by S&P Capital IQ expected a top line of $13.61 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.43. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.47 per share. Non-GAAP EPS of $1.43 for Q4 were 29% lower than the prior-year quarter's $2.02 per share. (The prior-year quarter included $1.76 per share in earnings from discontinued operations.) GAAP EPS of $1.16 for Q4 were 55% lower than the prior-year quarter's $2.56 per share. (The prior-year quarter included $1.76 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.4%, 250 basis points better than the prior-year quarter. Operating margin was 21.5%, 320 basis points better than the prior-year quarter. Net margin was 9.3%, much worse than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $14.51 billion. On the bottom line, the average EPS estimate is $1.38.

Next year's average estimate for revenue is $61.73 billion. The average EPS estimate is $5.81.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,622 members out of 5,776 rating the stock outperform, and 154 members rating it underperform. Among 1,443 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,415 give ConocoPhillips a green thumbs-up, and 28 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ConocoPhillips is hold, with an average price target of $61.65.

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