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Commodity Earnings: A Hit for Devon Energy, Misses for Archer Daniels and Marathon Oil


A look at how well (or how poorly) the commodity industry has done so far this week.

With the second quarter earnings season winding down, there are only a handful of companies left to report their results. Last week oil and gas giants Chesapeake Energy Corp (NYSE:CHK) and ConocoPhillips (NYSE:COP) managed to beat analyst expectations, even after both companies reported declines in earnings and revenues, respectively. Exxon Mobil (NYSE:XOM), however, reported a 57% decline in earnings, though revenues managed to top estimates.

Here, we take a close look at how well (or how poorly) the commodity producer industry did so far this week (data as of 8/7/13):

Archer Daniels Midland (NYSE:ADM) Posts Hits, and Misses Earnings

This agricultural giant reported second quarter net income of $223 million, or $0.34 per share, a significant decline from the $284 million figure seen a year prior. Adjusted earnings came in at $0.46 per share, slightly above analyst expectations of $0.44. Net sales were reported at $22.54 billion, slightly below the $22.87 billion estimates and a decline from the $22.68 figure seen a year prior. Archer Daniels said the primary cause of its 21% decline in profits (year-over-year) was tight U.S. crop supplies and volatile ethanol industry conditions. Year-to-date, the stock is up over 30%.

Marathon Oil (NYSE:MRO) Misses Earnings, Records Higher Revenues

This oil behemoth posted an adjusted net income of $478 million, or $0.67 per share, up from last year's $361 million recording. Analysts, however, expected EPS to come in at $0.71. Revenues totaled $3.9 billion in the second quarter, beating the $3.84 billion estimate; year-over-year, revenues increased 3.0%. Second quarter profits, however, came in below expectations, primarily due to weak oil sands results and higher operating costs for the segment. The stock has gained more than 16% so far in 2013.

Devon Energy (NYSE:DVN) Beats Wall Street Estimates

This Oklahoma-based oil and gas company posted second quarter earnings of $683 million, or $1.68 per share, a 43% rise from a year prior. Analysts expected EPS to come in around $0.95. With the help of increased production and higher oil and natural gas prices, revenues increased to $3.09 billion from last year's $2.56 billion recording. The figure also beat analysts' estimates of $2.65 billion in revenues. Year-to-date, the stock is up roughly 6%.

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Editor's note: This article by Daniela Pylypczak was originally published on Commodity HQ.
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