What You Need to Know Ahead of ConocoPhillips' Earnings Release
ConocoPhillips (COP), founded in 1917 and headquartered in Houston, Texas, is one of the world’s largest independent exploration and production companies. With a market cap of $119.7 billion, ConocoPhillips specializes in crude oil, natural gas, and natural gas liquids production, operating across six continents. The company is set to release its fourth-quarter earnings before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect ConocoPhillips to announce a profit of $1.86 per share, down 22.5% from $2.40 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion.
Its adjusted earnings of $1.78 per share in the last reported quarter outpaced the consensus estimates by 6%. Cost efficiencies and production management drove ConocoPhillips's earnings beat.
Analysts expect the energy company to report an EPS of $7.65 in fiscal 2024, down 12.8% from $8.77 in fiscal 2023. However, its EPS is projected to grow 4.4% year over year to $7.99 in fiscal 2025.
ConocoPhillips' shares have declined 3.7% over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 25.8% gains and the Energy Select Sector SPDR Fund’s (XLE) 14.3% returns over the same period.
ConocoPhillips has faced underperformance due to regulatory scrutiny surrounding its Marathon Oil acquisition, oil price volatility, and post-acquisition integration challenges. Despite these hurdles, the company’s shares surged 6.4% after its Q3 earnings release on Oct. 31. Revenue dropped 12.1% year-over-year to $13.6 billion, falling short of Wall Street’s projection of $14.46 billion. The company generated $5.8 billion in cash generated from operating activities and $4.7 billion in cash from operations (CFO).
The consensus opinion on ConocoPhillips stock is bullish, with a “Strong Buy” rating overall. Out of the 28 analysts covering the stock, 23 recommend “Strong Buy,” two advise “Moderate Buy,” and three suggest a “Hold” rating. This configuration is more bullish than three months ago when it had 19 analysts suggesting a "Strong Buy."
The average target price for COP is $132.92, indicating a potential upside of 27.8% from the current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
