Commodity Earnings Recap: ADM, MRO, DVN

With the second quarter earnings season winding down, there are only a handful of companies left to report their results. Last week, oil and gas giants Chesapeake Energy Corp (CHK) and ConocoPhillips (COP) managed to beat analyst expectations, even after both companies reported declines in earnings and revenues, respectively. Exxon Mobil (XOM), however, reported a 57% decline in earnings, though revenues managed to top estimates [for more commodity news and analysis subscribe to our free newsletter].

Here, we take a close look at how well (or how poorly) the commodity producer industry did so far this week (data as of 8/7/13):

Archer Daniels Midland (ADM) Posts Hits And MissesEarnings

This agricultural giant reported second quarter net income of $223 million, or $0.34 per share, a significant decline from the $284 million figure seen a year prior. Adjusted earnings came in at $0.46 per share, slightly above analyst expectations of $0.44. Net sales were reported at $22.54 billion, slightly below the $22.87 billion estimates and a decline from the $22.68 figure seen a year prior. Archer Daniels said the primary cause of its 21% decline in profits (year-over-year) was tight U.S. crop supplies and volatile ethanol industry conditions. Year-to-date, the stock is up over 30% [see How To Lose Money Investing In Commodities].

Marathon Oil (MRO) Misses Earnings, Records Higher Revenues

This oil behemoth posted an adjusted net income of $478 million, or $0.67 per share, up from last year’s $361 million recording. Analysts, however, expected EPS to come in at $0.71. Revenues totaled $3.9 billion in the second quarter, beating the $3.84 billion estimate; year-over-year, revenues increased 3.0%. Second quarter profits, however, came in below expectations, primarily due to weak oil sands results and higher operating costs for the segment. The stock has gained more than 16% so far in 2013.

Devon Energy (DVN) Beats Wall Street Estimates

This Oklahoma-based oil and gas company posted second quarter earnings of $683 million, or $1.68 per share, a 43% rise from a year prior. Analysts expected EPS to come in around $0.95. With the help of increased production and higher oil and natural gas prices, revenues increased to $3.09 billion from last year’s $2.56 billion recording. The figure also beat analysts’ estimates of $2.65 billion in revenues. Year-to-date, the stock is up roughly 6% [see The Hidden Cause of Rising Gas Prices].

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Disclosure: No positions at time of writing.

About Daniela Pylypczak

Daniela Pylypczak-Wasylyszyn is a regular contributor to, where she primarily focuses on commodity producers equities. She is also an analyst for, where she contributes articles and analysis each week. Since joining the team in 2011, Daniela has quickly grown to be one of the most widely-followed authors in the industry. Her articles are syndicated in a number of online publications, including Financial Advisor Magazine,, and Yahoo! Finance. Daniela is also a contributor for and Daniela graduated from DePaul University with a bachelor’s degree in finance and economics.
This entry was posted in Agriculture, Commodity Producers, Corn, Earnings Reports, Energy, Natural Gas, WTI and tagged , , . Bookmark the permalink.

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