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Oil Stock Q3 Earnings Slated on Oct 27: COP, EQT, NOV, CVE

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The Q3 earnings season is in full swing with more and more companies reporting financial results every day. In fact, as many as 170 S&P 500 members are set to release their quarterly results this week.

So far, 116 S&P 500 members that account for 30% of the index’s total market capitalization, have reported thier Q3 results. Per the Earnings Trends report (dated Oct 21, 2016), total earnings for these companies increased 3.3% on 1.8% higher revenues, both on a year-over-year basis. While 80.2% companies beat on earnings estimates, 62.9% posted better-than-expected revenues.

We note that this is the first quarter of positive earnings growth for the sector after five consecutive quarters of bottom-line deterioration. It is a well-documented fact that the Energy sector has been a drag on the aggregate growth picture for quite some time now. However, the tide seems to have turned with 80% of the energy companies beating earnings estimates and 20% outperforming on the top-line front.

The current earnings trend for the S&P 500 Index, however, is different. The earnings releases so far indicate a 54.6% plunge in total earnings on 20.6% lower revenues in Q3 results. Investors should note that excluding the impact of the energy sector earnings will likely rise by 3.7%. However, including the impact of crude, the earnings are predicted to grow by 0.1%. Hence, it is evident that the energy sector will continue to be a major dampener on the overall Q3 earnings.

With several companies slated to report their quarterly results in the coming days we expect to get a clearer idea about the Q3 earnings cycle. Menawhile, let’s see what’s in store for these four energy companies that are expected to come up with Q3 numbers on Oct 27.

Upstream energy firm, ConocoPhillips (COP - Free Report) is expected to report Q3 results, before the opening bell.

In Q2, this Houston, TX-based exploration and production company reported a negative earnings surprise of 27.42%.

Our proven model does not conclusively show that the company likely to beat on earnings this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP to beat on earnings.

ConocoPhillips has an Earnings ESP of -3.08% and a Zacks Rank #4. Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions. (Read more: ConocoPhillips: What's in Store This Earnings Season?)

CONOCOPHILLIPS Price and EPS Surprise

 

CONOCOPHILLIPS Price and EPS Surprise | CONOCOPHILLIPS Quote

Cenovus Energy Inc. (CVE - Free Report) , based in Calgary, Alberta, will report Q3 results, after the closing bell. Coming to earnings surprise history, the integrated oil player has a poor track of having missed estimates in the last three of the four quarters.

Cenovus Energy carries a Zacks Rank #3 but an Earnings ESP of 0.00%, which complicates our surprise prediction. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

CENOVUS ENERGY Price and EPS Surprise

 

CENOVUS ENERGY Price and EPS Surprise | CENOVUS ENERGY Quote

Headquartered in Houston, Texas, National Oilwell Varco, Inc. (NOV - Free Report) is also set to report Q3 results, before the opening bell. The company is a world leader in the design, manufacture, and sale of comprehensive systems, components, products, and equipment used in oil and gas drilling and production worldwide.

Coming to earnings surprise history, National Oilwell has an excellent track record. The company surpassed estimates in three of the last four quarters with an average beat of 20.74%.

However, with an earnings ESP of 0.00% and a Zacks Rank #3, our proven model shows that an earnings beat is uncertain for National Oilwell this time around. (Read more: National Oilwell: What's Up this Earnings Season?)

NATL OILWELL VR Price and EPS Surprise

 

NATL OILWELL VR Price and EPS Surprise | NATL OILWELL VR Quote

EQT Corp. (EQT - Free Report) is another integrated energy company which is expected to report Q3 results, before the market opens.

Headquartered in Pittsburgh, PA, EQT Corp. focuses on natural gas supply activities in the Appalachian area, including production and gathering, natural gas distribution and transmission as well as energy efficiency solutions, primarily in the eastern and western coastal regions of the United States. The Zacks Rank #3 company reported better-than-expected numbers in Q2 on the back of successful cost-reduction efforts. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
EQT Corp. has a good track of earnings surprises, having outpaced estimates in three of the last four quarters with an average beat of 70.98%. Our proven model shows that EQT Corp. is likely to beat on earnings in the to-be-reported quarter, given the combination of its favorable Zacks Rank and an Earnings ESP of +6.82%. (Read more: EQT Corp: A Beat in Store this Earnings Season?)

EQT CORP Price and EPS Surprise

 

EQT CORP Price and EPS Surprise | EQT CORP Quote

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