ConocoPhillips Falls Short: Q1 Revenue & Earnings Miss Estimates
Portfolio Pulse from Lekha Gupta
ConocoPhillips (NYSE:COP) reported Q1 FY24 earnings with revenue of $14.476 billion and adjusted EPS of $2.03, both missing consensus estimates of $15.047 billion and $2.04, respectively. Production increased to 1,902 MBOED, up 110 MBOED Y/Y. The average realized price for oil declined by 7% Y/Y to $56.60 per BOE. The company declared a quarterly dividend of $0.58 per share and a VROC of $0.20 per share. ConocoPhillips expects Q2 production of 1.91 to 1.95 million BOED. Shares fell 1.92% to $122.95.
May 02, 2024 | 4:22 pm
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NEGATIVE IMPACT
ConocoPhillips reported lower than expected Q1 FY24 earnings and revenue, with a notable decline in oil prices and a slight increase in production. The company also declared a quarterly dividend.
The miss on both top and bottom line expectations, coupled with the decline in oil prices, is likely to negatively impact investor sentiment in the short term, leading to a decrease in stock price as already observed.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The iShares U.S. Oil & Gas Exploration & Production ETF (IEO) may also be indirectly affected by ConocoPhillips' earnings miss, as COP is part of its portfolio.
IEO, which holds ConocoPhillips among its assets, could experience indirect negative impacts from COP's disappointing earnings, though the diversified nature of the ETF may mitigate the overall effect.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Investors can gain exposure to ConocoPhillips through the Energy Select Sector SPDR Fund (XLE), which may be indirectly impacted by COP's earnings miss.
Given that XLE includes ConocoPhillips in its holdings, the negative earnings report from COP could indirectly impact XLE's performance, although the effect might be diluted due to the diversified nature of the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50