ConocoPhillips Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

ConocoPhillips (NYS: 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.

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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The article ConocoPhillips Increases Sales but Misses Estimates on Earnings 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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