NEW YORK (TheStreet) -- Anadarko Petroleum
(APC) shares are climbing, up 1.8% to $101.25, in after-market trading on Monday following the release of the company's first quarter earnings report.
The company posted a first quarter net loss of -$2.7 billion, or -$5.30 per diluted share. The loss is due in large part to the company's first quarter $5.15 billion nuclear waste cleanup settlement.
Without the settlement the company reported adjusted net earnings of $1.26 per share.
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The company reported revenue of $5.8 billion in the quarter, beating analysts estimates of $3.9 billion.
Anadarko raised the midpoint of its full-year sales-volume guidance by 3.5 million BOE in anticipation of a productive fiscal year despite the lawsuit settlement.
TheStreet Ratings team rates ANADARKO PETROLEUM CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANADARKO PETROLEUM CORP (APC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 14.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for ANADARKO PETROLEUM CORP is rather high; currently it is at 68.55%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -19.64% is in-line with the industry average.
- APC's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.13 is sturdy.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $2,104.00 million or 5.22% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: APC Ratings Report
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