A month has gone by since the last earnings report for Murphy Oil (MUR). Shares have added about 39% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Murphy Oil due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Murphy Oil Reports Narrower-Than-Expected Loss in Q1
Murphy Oil incurred first-quarter 2020 adjusted loss of 30 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 35 cents. Further, the figure significantly declined from the year-ago quarter’s earnings of 15 cents.
On a GAAP basis, net loss was $2.71 against an income of 23 cents per share in the prior-year quarter.
In the quarter under review, Murphy Oil’s revenues totaled $603 million that beat the Zacks Consensus Estimate of $598 million by 0.8%.
The company received $42 million of cash crude oil hedge settlements and recorded a $358 million non-cash mark-to-market gain on crude oil contracts in the first quarter.
The company produced 186,000 barrels of oil equivalent per day (boe/d) in the first quarter, with 59% of oil and 66% of liquids.
It reduced planned capital expenditures to a midpoint of $740 million, which indicates approximately 50% decline from the original 2020 capital budget. Meanwhile, the company lowered quarterly dividend by 50% to 50 cents per share.
It announced the closure of corporate headquarters in El Dorado, Arkansas and office in Calgary, Alberta.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $1,558 million, up from $546 million in the prior-year quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
Currently, Murphy Oil has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Murphy Oil has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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