A month has gone by since the last earnings report for Concho Resources Inc. . Shares have lost about 4.1% 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.
Fourth-Quarter 2016 Results
Concho Resources reported fourth-quarter adjusted net earnings per share of $0.20, contrary to the Zacks Consensus Estimate for a loss of $0.09 and the prior-year quarter loss of $0.07. The outperformance came on the back of higher prices and lower lease operating costs.
Volume Analysis
Concho Resources' average quarterly volume increased 14% year over year at 164.3 thousand barrels of oil equivalent (MBoe) per day, of which 61% was liquids. Daily oil output was up 10% to 100.2 thousand barrels, while natural gas production came in at 384.7 million cubic feet (up 22%).
Realized Prices
The average realized natural gas price was up 38% from the year-ago quarter to $2.93 per thousand cubic feet, while average oil price realization rose 17% to $45.66 per barrel. Overall, the company fetched $34.70 per barrel as against $29.38 a year back.
Lease Operating Expenses
Lease operating expenses were 31% lower than the corresponding period of last year, falling to $5.31 per barrels of oil equivalent.
Balance Sheet & Capital Expenditure
As of Dec 31, 2016, Concho Resources had approximately $53.3 million in cash and cash equivalents. The company had a long-term debt of $2,740.6 million, representing a debt-to-capitalization ratio of 26.4%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been ten revisions higher for the current quarter In the past month, the consensus estimate has shifted by 616.3% due to these changes.
VGM Scores
At this time, Concho Resources' stock has a strong Growth Score of 'A', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Concho Resources (CXO) Down 4.1% Since the Last Earnings Report?
A month has gone by since the last earnings report for Concho Resources Inc. . Shares have lost about 4.1% 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.
Fourth-Quarter 2016 Results
Concho Resources reported fourth-quarter adjusted net earnings per share of $0.20, contrary to the Zacks Consensus Estimate for a loss of $0.09 and the prior-year quarter loss of $0.07. The outperformance came on the back of higher prices and lower lease operating costs.
Volume Analysis
Concho Resources' average quarterly volume increased 14% year over year at 164.3 thousand barrels of oil equivalent (MBoe) per day, of which 61% was liquids. Daily oil output was up 10% to 100.2 thousand barrels, while natural gas production came in at 384.7 million cubic feet (up 22%).
Realized Prices
The average realized natural gas price was up 38% from the year-ago quarter to $2.93 per thousand cubic feet, while average oil price realization rose 17% to $45.66 per barrel. Overall, the company fetched $34.70 per barrel as against $29.38 a year back.
Lease Operating Expenses
Lease operating expenses were 31% lower than the corresponding period of last year, falling to $5.31 per barrels of oil equivalent.
Balance Sheet & Capital Expenditure
As of Dec 31, 2016, Concho Resources had approximately $53.3 million in cash and cash equivalents. The company had a long-term debt of $2,740.6 million, representing a debt-to-capitalization ratio of 26.4%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been ten revisions higher for the current quarter In the past month, the consensus estimate has shifted by 616.3% due to these changes.
Concho Resources Inc. Price and Consensus
Concho Resources Inc. Price and Consensus | Concho Resources Inc. Quote
VGM Scores
At this time, Concho Resources' stock has a strong Growth Score of 'A', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.