Houston, Texas-based ConocoPhillips (COP) explores, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. The stock is valued at $134.7 billion by market cap. It is expected to announce its Q2 earnings before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect ConocoPhillips to announce a profit of $2.25 per share, up 22.3% from $1.84 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. Despite a 14.7% year-over-year decline in its EPS for the last reported quarter to $2.03, the company exceeded the consensus estimates by 2%.
In fiscal 2024, analysts expect COP to report an EPS of $8.90, up 1.5% from $8.77 in fiscal 2023. Looking ahead to fiscal 2025, its EPS is projected to grow 15.8% year over year to $10.31.
COP stock is down marginally on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 17.8% gains and the S&P 500 Energy Sector SPDR’s (XLE) 11.8% returns over the same time frame.
ConocoPhillips stock fell 1.7% on May 2 following the Q1 earnings report, which showed a 6.5% decline in sales and a 12.6% drop in net income. Market volatility, pricing pressures, and competition led to the revenue decline. However, the company's strong balance sheet and strategic acquisitions, like the Surmont asset in Canada, highlight its growth-oriented strategy.
In addition, the stock tumbled 3.1% on May 29 due to investor concerns over the significant acquisition of Marathon Oil in an all-stock deal valued at $22.5 billion, despite expectations of long-term value creation through expanded reserves and cost synergies.
The consensus opinion on ConocoPhillips stock is bullish, with a “Strong Buy” rating overall. Out of the 24 analysts covering the stock, 18 recommend “Strong Buy,” one advises “Moderate Buy,” and five suggest a “Hold” rating. This configuration is more bullish than three months ago, with 15 analysts suggesting a "Strong Buy." The average target price for COP is $143.98, indicating a potential upside of 25% from the current price levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
