Q3 Earnings Scorecard: Commodity Stock Hits And Misses

2013′s third 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 earnings and revenue estimates and posting a profit of $24 million. 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].

With the majority of companies already done reporting their third quarter results, we take a close look at how well (or how poorly) the commodity producer industry did:

Beating Analyst ExpectationsEarnings

  • Nucor Corp (NUE): This steelmaker reported a 34% increase in quarterly profits and an EPS of $0.46, easily beating analysts estimates of a $0.39 EPS. Sales for the company increased to $4.94 billion, up from $4.80 billion recorded a year prior.
  • Peabody Energy Corp (BTU):  This coal miner posted a net third quarter loss of $26.1 million. Despite the loss, the company still managed to beat analyst estimates with an EPS of $0.05 and revenues of $1.8 billion.
  • Schlumberger Ltd. (SLB): This oil giant topped both earnings and revenue estimates, with EPS coming in at $1.29 and revenues at $11.61 billion.
  • Halliburton (HAL): This oil and gas reported an EPS of $0.83 for the quarter, slightly above the the $0.82 expectation. Revenues came in at $7.5 billion, in line with analyst estimates [see also 25 Ways To Invest In Crude Oil].
  • Whiting Petroleum Corp (WLL): This Denver-based company beat both earnings and revenue estimates, posting an EPS of $1.28 and revenues of $831 million.
  • Weyerhaeuser Co (WY): This bellwether timber firm reported earnings of $0.27 per share, above estimates of $0.21. Revenues also beat estimates of $2.09 billion, coming in at $2.181 billion.
  • Valero Energy (VLO): This oil refiner reported earnings of $0.96 per share, above analysts’ $0.94 forecast. Total revenues came in at $34.0 billion, beating estimates of $30.2 billion.
  • ConocoPhillips (COP): This oil giant posted an EPS of $1.47, beating analyst estimates of $1.45. Unadjusted earnings were reported at $2.48 billion, a $600 million increase from last year’s recording.
  • Exxon Mobil (XOM): This oil giant beat earnings estimates, posting second quarter EPS of $1.79 versus estimates of $1.77. Revenues came in at $112.4 billion, beating expectations of $107.4 billion.

Mixed Results

  • Kinder Morgan Inc. (KMI): Another MLP, Kinder Morgan posted earnings of $0.27 per share; analysts had estimated EPS at $0.31. Revenues, however, were reported at $3.7 billion, in line with estimates [see  Fracking: The Modern Day Gold Rush].
  • British Petroleum (BP): This oil and gas giant reported earnings of $0.86 per share, lower than analyst estimates of $1.17. Revenues, however, came in at $94.7 billion, versus the consensus estimate of $90.3 billion.
  • Occidental Petroleum (OXY): This company reported earnings of $1.58 per share, below estimates of $1.61. Revenues managed to beat expectations, coming in at $6.0 billion.
  • Enbridge Energy Partners (EEP): This MLP missed EPS estimates of $0.22, reporting earnings of $0.13 per share. Revenues were reported at $1.7 billion, in line with expectations.
  • Marathon Petroleum Corp (MPC): This oil company reported EPS of $0.59, 2 cents lower than analyst estimates. Revenues, however, came in at $26.27 billion, above the $21.37 billion estimates.
  • CME Group (CME): CME reported EPS of $0.751, slightly above estimates of $0.75. Revenues came in at $715 million, well below the consensus estimate of $723.43 million.

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 $369 million, well below the estimated $384 million.
  • Southern Copper (SCCO): This copper miner reported earnings of $0.41 per share, missing analyst expectations by 1 cent. Revenues were reported at $1.4 billion, slightly below estimates.
  • Dow Chemical (DOW): The basic materials firm reported earnings of $0.50 per share, 4 cents below consensus estimates. Revenues came in at $13.73 billion, versus the expected $14 billion [see How To Lose Money Investing In Commodities].
  • Phillips 66 (PSX): This energy company recorded third quarter profits declining 67% year-over-year and earnings of $1.50 per share. Analysts were expecting earnings to come in at $1.83 per share.
  • Chevron Corporation (CVX): This oil company reported earnings of $2.57 per share, lower than consensus estimates of $2.71. Revenues were reported at $58.5 billion.

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Disclosure: No positions at time of writing.

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