Yahoo Finance The EOG Resources, Inc. (NYSE:EOG) Second-Quarter Results Are Out And Analysts Have Published New Forecasts
Last week, you might have seen that EOG Resources, Inc. (NYSE:EOG) released its second-quarter result to the market. The early response was not positive, with shares down 3.3% to US$123 in the past week. It was a workmanlike result, with revenues of US$6.0b coming in 4.0% ahead of expectations, and statutory earnings per share of US$2.95, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for EOG Resources
Following the latest results, EOG Resources' 20 analysts are now forecasting revenues of US$25.0b in 2024. This would be an okay 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 5.6% to US$12.45 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$24.0b and earnings per share (EPS) of US$12.02 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Despite these upgrades,the analysts have not made any major changes to their price target of US$144, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values EOG Resources at US$169 per share, while the most bearish prices it at US$124. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that EOG Resources' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.5% annually. So it's pretty clear that, while EOG Resources' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards EOG Resources following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$144, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for EOG Resources going out to 2026, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for EOG Resources you should be aware of, and 1 of them is a bit concerning.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
