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Anadarko (APC) to Report Q4 Earnings: What's in the Cards?

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Anadarko Petroleum Corporation is slated to report fourth-quarter 2018 financial results on Feb 5, after market close. The company delivered a negative earnings surprise of 6.82% in the last reported quarter. Let’s see how things are shaping up for this earnings season.

Factors to Consider

Anadarko expects average daily oil sales volume in the range of 674,000-728,000 barrels of oil equivalent per day for the fourth quarter of 2018. The decision to shut Horn Mountain, Marco Polo and Marlin platforms due to Hurricane Michael may impact its total production in the to-be-reported quarter.

The Zacks Consensus Estimate for the fourth quarter declined 42.7% to 59 cents over the past 90 days, indicating bearish analysts’ sentiments surrounding the stock.

However, Anadarko’s premium onshore oil assets are likely to have a positive impact on overall oil production. The company’s decision to buy back shares and redeem debts will continue to strengthen its financial position.

 

Anadarko Petroleum Corporation Price and EPS Surprise

Here is What Our Quantitative Model Predicts

Our proven model shows that Anadarko is unlikely to beat estimates in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is -4.78%. This is because the Most Accurate Estimate of 57 cents is pegged lower than the Zacks Consensus Estimate of 59 cents.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Anadarko carries a Zacks Rank #5 (Strong Sell). We caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Investors may consider the following companies from the same sector that have the right combination of elements to post an earnings beat in their upcoming quarterly release.

Cheniere Energy, Inc. (LNG - Free Report) has an Earnings ESP of +45.78% and a Zacks Rank #3. It is expected to report fourth-quarter 2018 earnings on Feb 26. You can see the complete list of today’s Zacks #1 Rank stocks here.

Noble Corporation (NE - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank #3. It is expected to report fourth-quarter earnings on Feb 20.

Chesapeake Energy Corporation has an Earnings ESP of +9.67% and a Zacks Rank #3. It is slated to report fourth-quarter earnings on Feb 27.

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