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EQT Corp (EQT) Down 7.2% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 7.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
EQT Corp Reverses to Earnings in Q4, Revenues Miss
EQT Corporation posted fourth-quarter 2016 adjusted earnings per share of $0.25. The Zacks Consensus Estimate was of a loss of $0.10. The company had incurred a loss of $0.07 per share in the year-earlier quarter.
Full-year 2016 adjusted loss of $0.33 per share compared unfavourably with adjusted earnings of $0.75 in 2015. The loss was narrower than the Zacks Consensus Estimate of a loss of $0.64 per share.
Net operating revenue in the quarter came in at $379.0 million. The top line not only lagged the Zacks Consensus Estimate of $552.38 million but also decreased from $601.4 million in the year-ago quarter.
Net operating revenue in 2016 decreased 31.3% year over year to $1,608.3 million. Revenues were also below the Zacks Consensus Estimate of $1,791.0 million.
Segment Details
EQT Production's fourth-quarter operating revenues were $318.3 million compared with $546.1 million in the year-ago quarter. The company clocked sales volume of 198.4 billion cubic feet equivalent (Bcfe) in the fourth quarter, up 28.4% year over year.
Operating loss in the fourth quarter was $251.1 million, substantially wider than an operating loss of $72.3 million in the year-ago period.
In the EQT Gathering segment, net gathering revenues increased 10.5% year over year to $100.2 million due to 15% higher gathered volumes. Net transmission revenue grew 18.5% to $94.8 million.
Operating income jumped 12% year over year to $63.8 million in the reported quarter.
Cash Flow
The company’s adjusted operating cash flow was $296.6 million compared with $316.7 million in the year-ago quarter.
Wells Drilled
The company spud 135 gross wells in 2016. Of the total, the company drilled 117 wells in the Marcellus with an average length-of-pay of 7,300 feet, 13 were drilled in the Upper Devonian with an average length-of-pay of 9,800 feet and four were drilled in Utica with an average length-of-pay of 6,100 feet.
Reserves Replacement
At the end of 2016, oil and gas proved reserves were 13.5 trillion cubic feet equivalent (Tcfe), up 35% from 2015. In 2016, the company added 1.9 Tcfe of proved reserves.
Guidance
Production sales volume for 2017 are expected in the band of 810–830 Bcfe. Liquids volume is projected at 10,100–10,500 thousand barrel of oil equivalent (MBBl). Of this, first-quarter 2017 volume is estimated at 190–195 Bcfe, with liquids of 2,520–2,540 MBBls. The company estimates full-year earnings before interest, taxes, depreciation, and amortization or EBITDA between $1,160 million and $1,180 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower. While looking back an additional 30 days, we can see even more upward momentum. In the past month, the consensus estimate has shifted by 9.97% due to these changes.
At this time, EQT Corp's stock has a nice Growth Score of 'B', though it is lagging a bit on the momentum front with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for growth investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.
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EQT Corp (EQT) Down 7.2% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 7.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
EQT Corp Reverses to Earnings in Q4, Revenues Miss
EQT Corporation posted fourth-quarter 2016 adjusted earnings per share of $0.25. The Zacks Consensus Estimate was of a loss of $0.10. The company had incurred a loss of $0.07 per share in the year-earlier quarter.
Full-year 2016 adjusted loss of $0.33 per share compared unfavourably with adjusted earnings of $0.75 in 2015. The loss was narrower than the Zacks Consensus Estimate of a loss of $0.64 per share.
Net operating revenue in the quarter came in at $379.0 million. The top line not only lagged the Zacks Consensus Estimate of $552.38 million but also decreased from $601.4 million in the year-ago quarter.
Net operating revenue in 2016 decreased 31.3% year over year to $1,608.3 million. Revenues were also below the Zacks Consensus Estimate of $1,791.0 million.
Segment Details
EQT Production's fourth-quarter operating revenues were $318.3 million compared with $546.1 million in the year-ago quarter. The company clocked sales volume of 198.4 billion cubic feet equivalent (Bcfe) in the fourth quarter, up 28.4% year over year.
Operating loss in the fourth quarter was $251.1 million, substantially wider than an operating loss of $72.3 million in the year-ago period.
In the EQT Gathering segment, net gathering revenues increased 10.5% year over year to $100.2 million due to 15% higher gathered volumes. Net transmission revenue grew 18.5% to $94.8 million.
Operating income jumped 12% year over year to $63.8 million in the reported quarter.
Cash Flow
The company’s adjusted operating cash flow was $296.6 million compared with $316.7 million in the year-ago quarter.
Wells Drilled
The company spud 135 gross wells in 2016. Of the total, the company drilled 117 wells in the Marcellus with an average length-of-pay of 7,300 feet, 13 were drilled in the Upper Devonian with an average length-of-pay of 9,800 feet and four were drilled in Utica with an average length-of-pay of 6,100 feet.
Reserves Replacement
At the end of 2016, oil and gas proved reserves were 13.5 trillion cubic feet equivalent (Tcfe), up 35% from 2015. In 2016, the company added 1.9 Tcfe of proved reserves.
Guidance
Production sales volume for 2017 are expected in the band of 810–830 Bcfe. Liquids volume is projected at 10,100–10,500 thousand barrel of oil equivalent (MBBl). Of this, first-quarter 2017 volume is estimated at 190–195 Bcfe, with liquids of 2,520–2,540 MBBls. The company estimates full-year earnings before interest, taxes, depreciation, and amortization or EBITDA between $1,160 million and $1,180 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower. While looking back an additional 30 days, we can see even more upward momentum. In the past month, the consensus estimate has shifted by 9.97% due to these changes.
EQT Corporation Price and Consensus
EQT Corporation Price and Consensus | EQT Corporation Quote
VGM Scores
At this time, EQT Corp's stock has a nice Growth Score of 'B', though it is lagging a bit on the momentum front with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for growth investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.