On Wednesday oil and gas refining and marketing company Marathon Oil Corporation (MRO) saw a steep 41% drop in fourth quarter profit despite higher revenues.
The Houston-based company reported its fourth-quarter net income of $322 million, or 45 cents per share, down from $549 million, or 78 cents per share, in the same quarter a year earlier.
Adjusting for certain items, net income from continuing operations was $388 million, or 55 cents per share, versus an adjusted net income of $522 million, or 78 cents per share, last year. Analysts, according to Thomson Reuters, were expecting adjusted ESP to be 67 cents in the quarter.
Despite a drop in net income, revenue was up in the quarter to $4.236 billion from $3.809 billion a year ago. Analysts had a consensus view that MRO would post revenues of $3.93 billion.
The company’s earnings were negatively impacted by low earnings in the exploration and production segment and higher tax provisions.
Marathon Oil shares were down 56 cents, or -1.61%, during pre-market trading on Wednesday. The stock is up +3.8% in the trailing twelve months.
The Bottom Line
Shares of Marathon Oil (MRO) have a dividend yield of 1.95% based on Wednesday’s intraday trading price of $33.91 and the company’s annualized dividend yield of 66 cents per share.
Marathon Oil Corporation (MRO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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