We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Newfield Exploration (NFX) Surprise in Q2 Earnings?
Read MoreHide Full Article
Newfield Exploration Company is set to report second-quarter 2016 results on Aug 2.
The company reported stable results in the trailing four quarters, beating the Zacks Consensus in each, with a positive average surprise of 772.27%. In the last reported quarter, Newfield Exploration’s loss per share of 9 cents came narrower than the Zacks Consensus Estimate of 10 cents loss per share. Let’s see how things are shaping up for this announcement.
Factors to Consider
Woodlands, TX based Newfield Exploration is an independent energy company engaged in the exploration and production (E&P) of crude oil and natural gas.
Almost throughout second-quarter 2016, oil price improved significantly from mid-February when West Texas Intermediate (WTI) crude fell to a 12-year low mark of $26.05 per barrel. Moreover, last month, oil prices settled above the psychologically important $50 per barrel level for the first time in more than 10 months. Yet, prices are still weak and predictably, Newfield Exploration was able to extract less value for its products. This is sure to put pressure on the company’s second-quarter profit margins.
With the volatility in oil prices, the top energy companies cut spending (in particular on the costly drilling projects) to make up for lower profit margins. This, in turn, meant less work for the beleaguered drillers as exploration for new oil and gas projects almost came to a standstill in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Newfield is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: Newfield has an Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 15 cents.
Zacks Rank: Newfield carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, a 0.00% ESP complicates our surprise prediction.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks from the energy space which, according to our model, have the right combination of elements to post an earnings beat this quarter are:
Legacy Reserves LP with an Earnings ESP of +31.58% and a Zacks Rank #2.
Northern Oil and Gas, Inc. (NOG - Free Report) with an Earnings ESP of +20.00% and a Zacks Rank #1.
Spectra Energy Corp (SE - Free Report) with an Earnings ESP of +12.00 % and a Zacks Rank #2.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Newfield Exploration (NFX) Surprise in Q2 Earnings?
Newfield Exploration Company is set to report second-quarter 2016 results on Aug 2.
The company reported stable results in the trailing four quarters, beating the Zacks Consensus in each, with a positive average surprise of 772.27%. In the last reported quarter, Newfield Exploration’s loss per share of 9 cents came narrower than the Zacks Consensus Estimate of 10 cents loss per share. Let’s see how things are shaping up for this announcement.
Factors to Consider
Woodlands, TX based Newfield Exploration is an independent energy company engaged in the exploration and production (E&P) of crude oil and natural gas.
Almost throughout second-quarter 2016, oil price improved significantly from mid-February when West Texas Intermediate (WTI) crude fell to a 12-year low mark of $26.05 per barrel. Moreover, last month, oil prices settled above the psychologically important $50 per barrel level for the first time in more than 10 months. Yet, prices are still weak and predictably, Newfield Exploration was able to extract less value for its products. This is sure to put pressure on the company’s second-quarter profit margins.
NEWFIELD EXPL Price and EPS Surprise
NEWFIELD EXPL Price and EPS Surprise | NEWFIELD EXPL Quote
With the volatility in oil prices, the top energy companies cut spending (in particular on the costly drilling projects) to make up for lower profit margins. This, in turn, meant less work for the beleaguered drillers as exploration for new oil and gas projects almost came to a standstill in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Newfield is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: Newfield has an Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 15 cents.
Zacks Rank: Newfield carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, a 0.00% ESP complicates our surprise prediction.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks from the energy space which, according to our model, have the right combination of elements to post an earnings beat this quarter are:
Legacy Reserves LP with an Earnings ESP of +31.58% and a Zacks Rank #2.
Northern Oil and Gas, Inc. (NOG - Free Report) with an Earnings ESP of +20.00% and a Zacks Rank #1.
Spectra Energy Corp (SE - Free Report) with an Earnings ESP of +12.00 % and a Zacks Rank #2.
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 >>