NEW YORK (TheStreet) -- Shares of Apache (APA) rose 1.64% to $75.43 on Wednesday ahead of the company's scheduled third-quarter earnings release on Thursday before the market open. Here's what analysts are expecting from the oil and gas company.
The consensus estimate calls for Apache to report earnings of $1.38 a share on revenue of $3.48 billion. In the third quarter last year, the company posted earnings of $2.32 a share, which beat analysts' expectations of $2.15 a share. Revenue totaled $4.41 billion, which easily surpassed the consensus estimate of $4.28 billion.
In the second quarter 2014, Apache posted earnings of $1.67 a share, which edged analysts' estimate of $1.65 a share. Revenue totaled $3.71 billion, which surpassed the consensus estimate of $3.64 billion.
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Separately, TheStreet Ratings team rates APACHE CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate APACHE CORP (APA) 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, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- APA's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
- Net operating cash flow has decreased to $2,339.00 million or 15.22% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, APACHE CORP has marginally lower results.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, APACHE CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: APA Ratings Report