ConocoPhillips Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

ConocoPhillips (NYS: COP) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), ConocoPhillips beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.


Gross margins dropped, operating margins grew, net margins contracted.

Revenue details
 ConocoPhillips reported revenue of $14.17 billion. The two analysts polled by S&P Capital IQ looked for revenue of $11.88 billion on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $15.53 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 $1.42. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.42 per share. Non-GAAP EPS of $1.42 for Q1 were 30% lower than the prior-year quarter's $2.02 per share. (The prior-year quarter included $0.55 per share in earnings from discontinued operations.) GAAP EPS of $1.73 for Q1 were 24% lower than the prior-year quarter's $2.27 per share. (The prior-year quarter included $0.55 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 48.7%, 130 basis points worse than the prior-year quarter. Operating margin was 27.2%, 190 basis points better than the prior-year quarter. Net margin was 14.6%, 430 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $14.39 billion. On the bottom line, the average EPS estimate is $1.29.

Next year's average estimate for revenue is $58.77 billion. The average EPS estimate is $6.09.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,647 members out of 5,798 rating the stock outperform, and 151 members rating it underperform. Among 1,391 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,360 give ConocoPhillips a green thumbs-up, and 31 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 $64.25.

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The article ConocoPhillips Beats on the Top Line 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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