Advertisement
New Zealand markets closed
  • NZX 50

    12,184.49
    +61.35 (+0.51%)
     
  • NZD/USD

    0.6062
    -0.0016 (-0.26%)
     
  • ALL ORDS

    8,243.30
    -19.10 (-0.23%)
     
  • OIL

    81.18
    -0.73 (-0.89%)
     
  • GOLD

    2,440.60
    +11.70 (+0.48%)
     

Is a Beat in Store for EOG Resources (EOG) in Q1 Earnings?

EOG Resources, Inc. EOG is set to report first-quarter 2023 results on May 4, after the closing bell.

In the last reported quarter, the upstream energy company’s earnings per share of $3.30 missed the Zacks Consensus Estimate of $3.31 on higher lease and well expenses, and transportation costs.

EOG Resources beat the Zacks Consensus Estimate once and missed thrice in the trailing four quarters, the average earnings surprise being a negative 0.33%. This is depicted in the graph below:

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. Price and EPS Surprise
EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. price-eps-surprise | EOG Resources, Inc. Quote

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for the company’s first-quarter earnings per share of $2.42 has witnessed nine downward revisions and one upward movement in the past 30 days. The figure suggests a decline of 39.5% from the year-ago reported number.

ADVERTISEMENT

The Zacks Consensus Estimate for EOG’s revenues for the March quarter is pegged at $5.5 billion, implying a year-over-year increase of 38.9%.

Earnings Whispers

Our proven model predicts an earnings beat for EOG Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. As you can see, that is the case here.

Earnings ESP: EOG Resources has an Earnings ESP of +0.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: EOG currently carries a Zacks Rank #3.

Factors to Note

Compared to the prior-year quarter, the pricing scenario of oil was not healthier. But, the crude pricing environment, although not as good as a year ago, was still highly favorable for exploration and production activities for firms like EOG Resources. A favorable commodity pricing scenario is likely to have aided EOG’s oil and oil equivalent production.

The Zacks Consensus Estimate for EOG’s total oil equivalent production is pegged at 83 MMBoe, suggesting an improvement from 79.5 MMBoe in a year-ago quarter. Our estimate for the metric is pegged at 82.9 MMBoe, indicating a year-over-year increase.

Other Stocks That Warrant a Look

Here are some other firms that you may want to consider, as these have too the right combination of elements to post an earnings beat this time around:

Magellan Midstream Partners LP MMP has an Earnings ESP of +0.70% and is currently a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magellan Midstream is scheduled to release first-quarter results on May 04. The Zacks Consensus Estimate for its earnings is pegged at $1.21 per share, suggesting an increase from the prior-year reported figure.

PBF Energy Inc. PBF has an Earnings ESP of +3.50% and a Zacks Rank #3 at present.

PBF Energy is scheduled to release first-quarter earnings on May 5. The Zacks Consensus Estimate for PBF’s earnings is pegged at $2.46 per share, suggesting a significant increase from the prior-year reported figure.

ConocoPhillips COP has an Earnings ESP of +0.13% and a Zacks Rank #3 at present.

ConocoPhillips is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.02 per share, suggesting a decline from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ConocoPhillips (COP) : Free Stock Analysis Report

Magellan Midstream Partners, L.P. (MMP) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research