The 10-second takeaway
For the quarter ended March 31 (Q1), Anadarko Petroleum beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share shrank significantly.
Gross margins increased, operating margins expanded, net margins dropped.
Anadarko Petroleum reported revenue of $3.89 billion. The 14 analysts polled by S&P Capital IQ expected sales of $3.45 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $3.41 billion.
EPS came in at $1.08. The 26 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. Non-GAAP EPS of $1.08 for Q1 were 17% higher than the prior-year quarter's $0.92 per share. GAAP EPS of $0.91 for Q1 were 79% lower than the prior-year quarter's $4.27 per share.
For the quarter, gross margin was 82.0%, 170 basis points better than the prior-year quarter. Operating margin was 34.0%, 710 basis points better than the prior-year quarter. Net margin was 11.8%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.66 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $15.11 billion. The average EPS estimate is $4.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,452 members out of 1,499 rating the stock outperform, and 47 members rating it underperform. Among 313 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 306 give Anadarko Petroleum a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Anadarko Petroleum is buy, with an average price target of $103.76.
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