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What's in Store for Matador Resources (MTDR) in Q3 Earnings?

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Matador Resources Company (MTDR - Free Report) is set to report third-quarter 2021 results on Oct 26, after the closing bell.

In the last reported quarter, the company’s earnings of $1.02 per share beat the Zacks Consensus Estimate of 72 cents, owing to increased production volumes and higher realizations of commodity prices.

The upstream energy player beat the Zacks Consensus Estimate for the bottom line in the prior four reported quarters, delivering an earnings surprise of 122.9%, on average. This is depicted in the graph below:

Matador Resources Company Price and EPS Surprise

Matador Resources Company Price and EPS Surprise

Matador Resources Company price-eps-surprise | Matador Resources Company Quote

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

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of 98 cents has seen two upward revisions and one downward movement in the past 30 days. The figure indicates an increase of 880% from the year-ago quarter.

Further, the Zacks Consensus Estimate for revenues of $388.7 million suggests an 91.1% rise from the prior-year quarter.

Factors to Consider

Compared with the September quarter of 2020, oil price has recovered significantly, thanks to the rolling out of coronavirus vaccines at a massive scale. Higher oil price is likely to have aided upstream energy players. Having a strong presence in oil-rich Wolfcamp and Bone Spring plays in the Delaware Basin, Matador is expected to have benefited from a favorable commodity pricing scenario.

Higher oil price is likely to have provided incentives to increased production. The Zacks Consensus Estimate for total daily oil equivalent production for the September quarter is pegged at 83,625 barrels of oil equivalent (BoE/D), suggesting an increase from 72,989 BoE/D in the prior year quarter.

The positives are likely to have been offset partially by rising expenses related to production taxes, transportation and processing.

Earnings Whispers

Our proven model does not indicate an earnings beat for Matador 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. That is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is -2.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Here are some firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

EQT Corporation (EQT - Free Report) has an Earnings ESP of +32.54% and is a Zacks #2 Ranked player. The company is scheduled to release third-quarter results on Oct 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

BP plc (BP - Free Report) has an Earnings ESP of +11.62% and a Zacks Rank of 1. It is scheduled to report third-quarter results on Nov 2.

Callon Petroleum Company has an Earnings ESP of +3.37% and a Zacks Rank #2. The firm is scheduled to release third-quarter earnings on Nov 3.


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