ConocoPhillips' Net Income Shrinks

Despite rising sales, ConocoPhillips (NYSE: COP) reported falling profit in the second quarter. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.

Earnings and Revenue:
ConocoPhillips managed to exceed Wall Street estimates with stronger-than-expected EPS and revenues. The company reported EPS of adjusted net income of $2.41/share versus the $2.20/share estimate and revenues of $67 billion versus the $60.29 billion estimate. EPS fell 13% while revenue climbed 46.7% from the same period last year.

With last quarter's falling profit, the company ends a streak of four consecutive quarters of year-over-year profit increases. Over the past five quarters, ConocoPhillips has averaged revenue growth of 28.7%.

Income:
For the year, ConocoPhillips reported net income of $7.05 per share. The company trumped analyst projections of $6.79 by 3.8%. According to the reported number, the company's income fell 18.3% from last year's levels.

Conference Call:
The conference call for second quarter earnings can be accessed here.

Official Comment:
"We had a solid quarter," said Jim Mulva, chairman and chief executive officer. "Higher adjusted earnings and cash flow were driven by better commodity prices and refining margins. Production performance was strong and capacity utilization of our refineries exceeded 90 percent."

Industry:
ConocoPhillips is in the integrated oil-US industry. That industry is currently enjoying price/earnings growth of 1.1%. The company's EPS compares unfavorably with its industry's estimated average of $6.71.

What to Do Next:
Now that you've gotten a round up of ConocoPhillips' latest numbers, you can make a better-informed decision about whether to buy, sell or hold those shares. Whatever you do, be sure to visit us before the company's next earnings release for a full preview.

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