Anadarko Petroleum Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

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

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.

Revenue details
 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.

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 $1.08. 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.

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 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.)

Looking ahead
 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.

Investor sentiment
 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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The article Anadarko Petroleum Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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