2013′s second quarter earnings season was perhaps not what many analysts had expected, as companies across all sectors reported both hits and misses. In the commodity space, Alcoa had set the tone for the start of the season, beating estimates despite falling aluminum prices. And while other commodity stocks also managed to post better-than-expected results, some showed signs of weakness from this year’s commodity slump [for more commodity news and analysis subscribe to our free newsletter].
And with the majority of companies already done reporting their second quarter results, we take a close look at how well (or how poorly) the commodity producer industry did:
- Schlumberger Ltd. (SLB): This oil giant topped both earnings and revenue estimates, with EPS coming in at $1.57 and revenues at $11.18 billion.
- Halliburton (HAL): This oil and gas giant beat both earnings and revenue estimates, though it reported a dip in its second quarter earnings. EPS was reported at $0.73 for the quarter, a slight drop from last year’s $0.79 reading but above the $0.72 expectation. Revenues came in at $7.317 billion, slightly higher than analyst estimates of $7.25 billion [see also 25 Ways To Invest In Crude Oil].
- Freeport McMoran (FCX): This popular miner reported earnings of $0.49 per share, slightly higher than analyst estimates of $0.44. Revenues also topped expectations, coming in at $4.29 billion versus the expected $4.28 billion.
- Plum Creek Timber (PCL): This popular timber firm posted earnings of $0.28 per share, beating analyst estimates of $0.23. Revenues came in just shy of expectations at $303 million.
- Chesapeake Energy Corp (CHK): This oil and gas firm managed to top both earnings and revenue estimates, even after reporting a 51% decline in net income year-over-year. Revenues advanced to $4.68 billion, topping estimates of $3.21 billion. EPS came in at $0.51 versus the expected $0.41.
- ConocoPhillips (COP): This oil giant posted an EPS of $1.41, beatings analyst estimates of $1.29. Revenue was reported at $14.14 billion, a decrease from last year’s $14.84 figure but still above expectations of $12.75 billion.
- Kinder Morgan Inc. (KMI): Another MLP, Kinder Morgan posted net income of $277 million, or $0.27 per share; analysts had estimated EPS at $0.33. Revenues, however, were reported at $3.38 billion versus the expected $3.14 billion [see Fracking: The Modern Day Gold Rush].
- Valero Energy (VLO): This oil refiner reported earnings of $0.85 per share, lower than analysts’ $0.93 forecast. Total revenues came in at $34.03 billion, down from $34.66 billion. Analysts expected to see earnings of $30.18 billion.
- Exxon Mobil (XOM): This oil giant missed earnings estimates, posting second quarter EPS of $1.55 (a 57% decline from a year prior) versus estimates of $1.90. Revenues, however, came in at $106.5 billion, slightly beating expectations of $105.54 billion.
Missing The Mark
- El Paso Pipeline Partners (EPB): This MLP missed both earnings and revenue estimates. EPS came in at $0.40, versus the estimated $0.48. Meanwhile, revenues were reported at $359 million, well below the estimated $389.6 million.
- Southern Copper (SCCO): This copper miner reported earnings of $0.44 per share, missing analyst expectations by 4 cents.
- British Petroleum (BP): This oil and gas giant reported earnings of $2.04 billion, lower than analyst estimates of $2.56 billion. Revenues remained flat at $94.71 billion [see How To Lose Money Investing In Commodities].
- Phillips 66 (PSX): This energy company recorded second quarter profits declining 20% year-over-year and earnings of $1.50 per share. Analysts were expecting earnings to come in at $1.81 per share.
Disclosure: No positions at time of writing.