Commodity Earnings on Tap: Energy All Around (BP, CMI, MRO)

As we enter the latter part of earnings season, investors have already gotten a taste of how the final three months of 2013 fared for the Street. Thus far, it seems that there have been more earnings misses or disappointing guidance given than major wins or rosy outlooks. This week will keep energy firms in the spotlight with a few key European-based firms reporting, as well as one major agribusiness entity [for more commodity news and analysis subscribe to our free newsletter]:

  • Archer Daniels Midland (ADM): Prior to Tuesday’s opening bell, this farm product giant will detail its most recent fiscal quarter. Analysts are expecting to see EPS of $0.84 and revenues just over $25 billion. Note that ADM has hit (and missed) two of its last four quarterly reports.
  • BP PLC (BP): At 2 AM EST Tuesday, BP will hold its earnings call. The Street is expecting this oil giant to haul in EPS of $0.89 with revenues at $62.13 billion. The company has hit three out of its last four earnings estimates, but its one miss did come in well below estimates.
  • NuStar Energy LP (NS): This MLP is known for its storage and transportation of petroleum products in the U.S. and the Netherlands. Reporting prior to Wednesday’s open, traders and analysts will be looking for EPS of $0.37 and revenues just over $842 million.
  • Oil WellMarathon Oil Corporation (MRO): No longer affiliated with Marathon Petroleum, Marathon Oil is slated to release its earnings after Wednesday’s closing bell. The Street will be looking for EPS of $0.73 and revenues at $3.59 billion. Note that the firm is expected to show weak sales growth, which could hurt the stock in after-hours trading.
  • Cummins Inc (CMI): This natural gas engine producer has heavy ties with the commodity world and its earnings will be especially interesting given the volatility in NG prices. The firm will report prior to Thursday’s opening bell where analysts will be looking for EPS of $1.98 and revenues just over $4.21 billion.
  • Statoil ASA (STO): Another major European firm to report, Statoil will release its earnings at 1AM EST on Friday. The Street is expecting the Norwegian oil giant to show EPS of $0.70 with revenues of $28.45 billion.
  • Buckeye Partners LP (BPL): Also prior to Friday’s open will be the report from this oil & gas pipeline operator. Analysts have pegged EPS at $0.85 with revenues at $1.2 billion.

The Bottom Line

As always, we remind investors that earnings reports are two-pronged: the numbers and the guidance. Lately, it seems like guidance has taken over a stock’s reaction to earnings as traders wish to see strong outlooks amid Fed tapering. As such, be sure to pay close attention to the guidance and forecast that each company gives in order to fully digest and properly react to the report.

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Disclosure: Long BP.

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