Anadarko Petroleum Goes Negative

Anadarko Petroleum (NYS: APC) reported earnings on Feb. 6. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share dropped to a loss.

Gross margins expanded, operating margins dropped, and net margins dropped.

Revenue details
Anadarko Petroleum logged revenue of $3.20 billion. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $3.24 billion. Sales were 46% higher than the prior-year quarter's $2.55 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.66. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share on the same basis. GAAP EPS were -$0.72 for Q3 compared to $0.22 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 81.2%, 390 basis points better than the prior-year quarter. Operating margin was -7.5%, 980 basis points worse than the prior-year quarter. Net margin was -9.3%, 1,350 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.29 billion. On the bottom line, the average EPS estimate is $0.62.

Next year's average estimate for revenue is $13.29 billion. The average EPS estimate is $3.11.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,426 members rating the stock outperform and 53 members rating it underperform. Among 374 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 367 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 outperform, with an average price target of $99.10.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. 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.

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