NEW YORK (TheStreet) -- ConocoPhillips (COP) - Get Report shares are up by 1.03% to $52.78 in afternoon trading on Wednesday, ahead of the release of the oil company's second quarter financial results, which are due out before the market open tomorrow morning.
Analysts on average are expecting the company to report earnings of 4 cents per share, a significant drop from the year ago period when the company reported earnings of $1.61 per share.
For the most recent quarter ConocoPhillips is expected to produce between 1,555 and 1,595 MBOED compared to the 1,610 MBOED it averaged in the previous quarter.
Revenue for the period is expected to be $8.7 billion, a decline from the $14.7 billion the company reported in the same period a year ago.
Separately, TheStreet Ratings team rates CONOCOPHILLIPS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONOCOPHILLIPS (COP) 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 reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- COP, with its decline in revenue, underperformed when compared the industry average of 38.8%. Since the same quarter one year prior, revenues fell by 49.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for CONOCOPHILLIPS is currently lower than what is desirable, coming in at 33.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.52% trails that of the industry average.
- Net operating cash flow has significantly decreased to $1,870.00 million or 70.48% 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: COP Ratings Report