Houston, Texas-based Marathon Oil Corporation (MRO), founded in 1887, is an independent exploration and production company. With a market cap of $15.7 billion, Marathon Oil dives deep into the exploration, production, and marketing of crude oil, natural gas liquids, and natural gas both domestically and globally. It is expected to announce its Q2 earnings after the market closes on Wednesday, August 7.
Ahead of the event, analysts expect Marathon Oil to report a profit of $0.69 per share, up 43.8% from $0.48 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections over the past four quarters. Its EPS for the last reported quarter declined 17.9% year over year to $0.55. However, it exceeded the consensus estimates by 5.8%.
Looking ahead to fiscal 2024, analysts expect Marathon Oil to report an EPS of $2.82, up 8.1% from $2.61 in fiscal 2023. In fiscal 2025, its EPS is projected to climb 11% year over year to $3.13.
Shares of Marathon Oil have gained 15.4% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 13.2% gains and the S&P 500 Energy Sector SPDR’s (XLE) 9.6% returns over the same time frame.
Shares of Marathon Oil dipped 2.8% on May 1, after the company unveiled its fiscal Q1 earnings report. Despite topping its bottom-line estimates, Marathon Oil missed the projection on the top line by 1.7%. Its cash flow from operations also saw a decline of 12.5% compared to the year-ago quarter, which raised concerns regarding its operational efficiency.
However, MRO stock rose 8.4% on May 29 following the announcement of merger agreement with oil and gas company ConocoPhillips (COP), under which Marathon Oil shareholders will receive 0.255 shares of ConocoPhillips for each share of Marathon Oil held. The transaction is expected to close in the fourth quarter of 2024.
The consensus opinion on Marathon Oil stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 20 analysts covering the stock, nine recommend a “Strong Buy,” one advises a “Moderate Buy,” and 10 suggest a “Hold” rating.
The average target price for Marathon Oil stock is $33.11, which hints at a potential upside of 18.7% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
