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This Week's Big Focus on Big Oil
10/29/2013 6:00 am EST
As earnings season gets into full swing, Wall Street’s attention will be fixated on the results of the most recent quarter, writes the staff at Commodity HQ.
This week sees big oil step up to the plate, with some of the biggest names in the industry reporting on how they fared over the past three months. Below, we preview some of the most significant commodity earnings this week, helping investors prepare for what will ultimately be an active five-day stretch for markets:
British Petroleum (BP): Prior to the open of US markets Tuesday, BP is slated to hold its earnings call. Analysts are looking for EPS of $0.99 with revenues topping $61 billion. Note that BP had a tough miss on its last earnings call and sales growth is expected to come in light.
Occidental Petroleum (OXY): Also reporting before Tuesday’s opening bell, Occidental Petroleum will release its most recent earnings statement. Analysts expect to see EPS of $1.92 with revenues just over $6.4 billion.
Valero Energy (VLO): The San Antonio-based firm is also slated to unveil earnings before markets open Tuesday. The Street will be looking for EPS of $0.47 with revenues just shy of $30 billion. VLO has beat on each of their earnings reports in the past 12 months, boding well for Tuesday’s release.
Enbridge Energy Partners (EEP): This MLP is an investor favorite, putting it under the microscope for its report Wednesday. The firm is expected to haul in EPS of $0.25 with revenues just eclipsing $1.7 billion. In its last four earnings estimates, EEP has been a feast-or-famine reporter, either missing by a sizable margin (on two occasions) or comfortably beating estimates (also on two occasions).
Phillips 66 (PSX): After easily beating the Street on three consecutive reports, Phillips had a tough miss for the quarter ending June 30, 2013. The company will look to get back to its winning ways with its report prior to market open Wednesday where analysts will look for EPS of $0.94 and revenues over $37 billion.
ConocoPhillips (COP): Prior to Thursday’s opening bell, COP will hold its earnings call. Analysts expect to see EPS at $1.45 and revenues just past $13 billion; note that the company has been well-managed from an earnings standpoint, surpassing the Street in each of its last four reports.
Marathon Petroleum Corp (MPC): Marathon Petroleum had been a subsidiary of Marathon Oil (MRO) until early 2011, when the two companies severed ties to operate as two completely separate entities. Also reporting before the opening bell Thursday, analysts are looking for Marathon Petroleum to show EPS of $0.80 and revenues of $21.3 billion.
Exxon Mobil (XOM): The biggest in the industry, Exxon will be heavily watched when it reports before the bell on Thursday. The company beat estimates three consecutive times before a poor Q2 2013 saw earnings take a hit. Analysts are expecting EPS of $1.77 and revenues at a massive $107 billion.
Chevron Corporation (CVX): Last but certainly not least, Chevron will detail earnings before Friday’s opening bell. The company’s earnings history has been shaky, missing two of its last four reports. The Street is looking for a healthy EPS of $2.78 and revenues just over $58 billion.
Two Sides to Every Report
As always, investors must keep in mind that guidance can be equally as important (if not more so) than the numbers reported. As evidenced by McDonald’s (MCD) last week, which beat EPS and revenue estimates but gave a weak outlook, leading to falling share prices. Keep your eye on both facets of each report in order to properly react and dissect each release.
By the Staff at Commodity HQ
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