Anadarko Petroleum: What To Expect From One Of The Street's Favorite E&P Stocks

Anadarko Petroleum Corporation APC is scheduled to report its first quarter financial results after the market closes on Monday.

According to Estimize, the crowd is more bearish than experts. While they both expect to see losses, Wall Street analysts model a net loss of $(0.63) on revenue of $2.453 billion, while Main Street projects a loss of $(0.57) on revenue of $2.473 billion.

These estimates imply a substantial fall from the EPS of $1.26 reported in the first quarter of 2014, and from last quarter's $0.37.

The graph below provides a look back at Anadarko Petroleum’s actual earnings versus estimates.

There is no clear trend, although there is a slight tendency to miss estimates.

The second chart shows how estimates have evolved over the quarter. The Street has been increasingly bearish in relation to Anadarko Petroleum, with consensus constantly falling since the beginning of the year.

What Are Analysts Saying?

In a recent report, analysts at Nomura recommended North American E&P stocks, including Anadarko Petroleum (Buy rated, $104 target): “analysts believe that oil prices, which are down nearly 50 percent in the past year, drive the performance of many E&P stocks, and they believe that a recovery in oil prices is coming in the near future.”

Bank of America also included Anadarko among its top 10 catalyst-driven stock recommendations for the second quarter, rating the stock a Buy.