For Immediate Release
Chicago, IL – August 5, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Marathon Oil Corporation (MRO), Exxon (XOM), ConocoPhillips (COP), Chevron (CVX) and WellPoint Inc. (WLP).
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Here are highlights from Tuesday’s Analyst Blog:
Marathon Misses on Lower Prices
Marathon Oil Corporation (MRO) second-quarter 2009 results came in sharply weaker-than-expected, with the contribution from increased oil and natural gas production and improved refining margins more than offset by lower realized commodity prices. Earnings per share, excluding mark-to-market and divestment gains, came in at 35 cents, below the Zacks Consensus Estimate of 53 cents.
As has been the case with the other oil majors that have already reported — Exxon (XOM), ConocoPhillips (COP) and Chevron (CVX) — earnings and revenue comparisons with the year-earlier period were even worse. Marathon’s adjusted earnings per share plunged 71%, while sales declined 40% to $13 billion.
Income from the upstream segment totaled $220 million during the quarter, down more than 73% from the year-ago level.
The company reported production (available for sale) of 411,000 oil-equivalent barrels per day (BOE/d), in-line with its interim guidance last month. This is a 12% year-over-year production growth, reflecting strong operating performance from the company’s Alvheim/Vilje oil field in the North Sea and natural gas assets in Equatorial Guinea.
Lower realized oil and natural gas prices offset the significant upstream volume gains. Marathon’s worldwide realized crude oil price of $55.49 per barrel was more than 50% below the year-earlier level, while natural gas realizations dropped 57% to $2.21 per thousand cubic feet (Mcf).
WellPoint Profit Declines
Health insurer WellPoint Inc. (WLP) reported second quarter GAAP results of $693.5 million or $1.43 per share that were in-line with the Zacks Consensus Estimate. Non-GAAP earnings, excluding net investment losses of 7 cents per share, came in at $1.50 per share. On a GAAP basis, profits declined 7.6% from the year-ago period.
Total operating revenues declined 1.4% to $15.265.8 million. Operating gains from the Commercial Business segment declined 31.2% to $582.8 million. Results were affected by the increasing unemployment rate. The Consumer Business reported an operating gain of $382.1 million, up 67.7% from the year-ago period. Operating improvements in the Senior business helped drive growth in this segment. The Other segment reported a 12.5% year-over-year increase in operating gain, which was driven by growth in the company’s NextRx pharmacy benefit management operation.
We were disappointed to see a significant decline in medical enrollment in the reported quarter. Medical enrollment fell by 1.1 million people, or 3%, to 34.2 million members. Rising unemployment led to the decline in enrolment. With the increasing trend in unemployment rates, we expect medical enrolment to decline further. The company cut down its year-end membership expectations to 33.6 million.
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