In the most recent quarter, Marathon Oil (NYSE: MRO) saw its profit decline. Why did the company's profit tumble? Let's dig a bit deeper. Then we can see what steps you can take.
Earnings and Revenue:
Marathon Oil posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported adjusted net income of 59 cents/share versus the 85 cents/share estimate and revenues of $3.8 billion versus the $2.6 billion estimate.
With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.
Income:
For the year, Marathon Oil reported net income of $4.29/share. The company trumped analyst projections of $4.19 by 2.4%. According to the reported number, the company's income fell 41.8% from last year's levels.
Conference Call:
The conference call for third quarter earnings can be accessed here.
Official Comment:
"Operationally, we had a strong quarter across our assets," said Clarence P. Cazalot Jr, Marathon Oil`s chairman, president and CEO. "Our production available for sale from the combined Exploration and Production (E&P) and Oil Sands Mining (OSM) segments was up two percent over the second quarter, driven by strong reliability, particularly in Norway and Equatorial Guinea, and a full quarter of the Athabasca Oil Sands Project (AOSP) post-Expansion one. Operating cash flow remains solid even with the pullback in commodity prices, essentially self-funding our capital program and robust dividend and providing the opportunity to repurchase approximately 12 million shares for $300 million during the quarter. The higher tax rate in the third quarter of 2011 is largely a result of excess foreign tax credits the Company currently does not expect to utilize in the future, which resulted in a non-cash charge of $227 million in the quarter."
Industry:
Marathon Oil is in the integrated oil-US industry. That industry is currently enjoying price/earnings growth of 1.3%.
What to Do Next:
Those are the latest numbers from Marathon Oil, including how the announcement compared to Wall Street estimates. Benzinga consistently provides earnings previews and recaps for major corporate events. Be sure to visit us next quarter for a full Marathon Oil preview.
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