Please ensure Javascript is enabled for purposes of website accessibility

It's Showtime for ConocoPhillips

By Seth Jayson – Updated Apr 10, 2017 at 1:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

ConocoPhillips (NYSE: COP) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ConocoPhillips's revenues will wane -73.0% and EPS will wane -29.7%.

The average estimate for revenue is $15.18 billion. On the bottom line, the average EPS estimate is $1.42.

Revenue details
Last quarter, ConocoPhillips logged revenue of $16.37 billion. GAAP reported sales were 2.3% higher than the prior-year quarter's $14.92 billion.

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

EPS details
Last quarter, non-GAAP EPS came in at $1.43. GAAP EPS of $1.16 for Q4 were 55% lower than the prior-year quarter's $2.56 per share.

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

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $57.45 billion. The average EPS estimate is $5.83.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,646 members out of 5,797 rating the stock outperform, and 151 members rating it underperform. Among 1,355 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,326 give ConocoPhillips a green thumbs-up, and 29 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.

Looking for an alternative to ConocoPhillips? By investing in this multibillion-dollar energy company, you can get in before its stock rebounds, when natural gas prices eventually do turn upward. And until natural gas prices do rebound (which a top Motley Fool analyst expects will happen by 2014), you can cash in on its stable 5.7% dividend. Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ConocoPhillips Stock Quote
ConocoPhillips
COP
$124.32 (-1.96%) $-2.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.