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A month has gone by since the last earnings report for Murphy Oil (MUR). Shares have lost about 1.9% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Murphy Oil due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Murphy Oil Beats Q1 Earnings and Revenue Estimates
Murphy Oil reported first-quarter 2019 adjusted earnings of 15 cents per share, which beat the Zacks Consensus Estimate of 10 cents by 50%. However, the bottom line declined from the year-ago quarter’s level of 96 cents. On a GAAP basis, net income was 23 cents.
Revenues
In the quarter, Murphy Oil generated revenues of $591 million, which beat the Zacks Consensus Estimate of $546 million by 8.2%. The top line increased 57.7% on a year-over-year basis.
Operational Highlights
On Mar 21, 2019, the company announced the divestiture of its Malaysia assets for $2.127 billion cash. The operation will be reported as discontinued from the first quarter.
The company produced 148,000 barrels of oil equivalent per day (boe/d) in the first quarter from continuing operations.
Murphy Oil’s total costs and expenses amounted to $506.4 million, up 42.2% from $355.8 million in the year-ago quarter.
Operating income from continuing operations came in at $84.5 million, higher than $18. 9 million in the prior-year quarter.
The company incurred interest charges of $46.1 million, up from $44.5 million in the prior-year quarter.
Financial Condition
Murphy Oil had cash and cash equivalents of $286.3 million as of Mar 31, 2019 compared with $359.9 million as of Dec 31, 2018.
Net cash provided by continuing operations activities in the first quarter was $217.2 million, higher than $110.8 million in the year-ago quarter.
Guidance
Murphy Oil expects net production including non-controlling interest for second-quarter 2019 in the range of 155,000-159,000 boe/d.
The company expects 2019 capital expenditure budget in the range of $1.15- $1.35 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 30.66% due to these changes.
VGM Scores
Currently, Murphy Oil has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.