With a market cap of $15.1 billion, Marathon Oil Corporation (MRO) is an independent exploration and production company. Based in Houston, Texas, it operates primarily in the United States and Africa, focusing on building a strong integrated natural gas business and enhancing its upstream asset portfolio. The company is set to release its fiscal Q3 earnings results on Wednesday, Nov. 6.
For Q3 earnings results, analysts forecast MRO to post a profit of $0.68 per share, a decline of 11.7% from $0.77 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion. MRO missed the consensus EPS estimate by nearly 6% in the last reported quarter.
For fiscal 2024, analysts expect MRO to report EPS of $2.52, a decrease of 3.5% from $2.61 in fiscal 2023. However, looking ahead to fiscal 2025, EPS is expected to grow 1.6% year-over-year to $2.56.
Over the past 52 weeks, MRO has declined 6.2%, underperforming the broader S&P 500 Index's ($SPX) 38.4% rise and the Energy Select Sector SPDR Fund's (XLE) marginal rise over the same period.
Despite reporting lower-than-expected Q2 adjusted EPS of $0.63 on Aug. 7, Marathon Oil's shares rose 1.5% the next day, driven by revenue of $1.7 billion that exceeded estimates. This revenue surprise helped alleviate concerns over declining natural gas prices and lower production levels. Additionally, investors were encouraged by the company's expectations for peak oil production of approximately 200,000 net barrels per day in Q3, signaling a potential rebound in earnings.
Analysts' consensus rating on MRO stock is cautiously optimistic, with a "Moderate Buy rating overall. Out of 19 analysts covering the stock, opinions include eight "Strong Buys," one "Moderate Buy," and 10 "Holds." This configuration is slightly less bullish than three months ago, with nine analysts suggesting a "Strong Buy." The average analyst price target for MRO is $31.28 suggesting a modest potential upside of 17% from current levels.
On the date of publication, Sohini Mondal 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.
