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Can Canadian Natural Resources (CNQ) Q1 Earnings Surprise?
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Independent oil and gas explorer Canadian Natural Resources Ltd. (CNQ - Free Report) is set to release its first-quarter 2017 results before the opening bell on Thursday, May 4.
In the preceding three-month period, the Calgary, Alberta-based upstream player reported profit of 38 cents, which was way above the Zacks consensus Estimate of 7 cents. Solid execution and strength of the company’s balanced portfolio led to the outperformance.
As far as the earnings surprise history is concerned, the company has a mixed record: it's missed estimates in 2 of the last four quarters.
Canadian Natural Resources Limited Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Like any other energy player − primarily involved in exploration, development and production of crude oil − the fate of Canadian Natural Resources’ business is directly correlated with crude prices. Continued weakness in commodity prices has significantly affected the company’s revenues, earnings and cash flows.
However, efficiencies on the production front might be able to mitigate some of the damage. In particular, the company boasts of a strong and diverse production base with long-life and low decline rate assets.
Moreover, Canadian Natural Resources has been able to reduce unit costs that will provide some buffer amid the tumbling commodity prices.
Earnings Whispers
Our proven model does not conclusively show that Canadian Natural Resources will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 13 cents.
Zacks Rank: Canadian Natural Resources has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
While earnings beat looks uncertain for Canadian Natural Resources, here are some energy firms you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter:
Global Partners L.P. (GLP - Free Report) has an Earnings ESP of +233.33% and a Zacks Rank #1. The partnership is anticipated to release earnings on May 9.
NOW Inc. (DNOW - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #2. The company is likely to release earnings on May 3.
Sell These Stocks
Now. Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
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Can Canadian Natural Resources (CNQ) Q1 Earnings Surprise?
Independent oil and gas explorer Canadian Natural Resources Ltd. (CNQ - Free Report) is set to release its first-quarter 2017 results before the opening bell on Thursday, May 4.
In the preceding three-month period, the Calgary, Alberta-based upstream player reported profit of 38 cents, which was way above the Zacks consensus Estimate of 7 cents. Solid execution and strength of the company’s balanced portfolio led to the outperformance.
As far as the earnings surprise history is concerned, the company has a mixed record: it's missed estimates in 2 of the last four quarters.
Canadian Natural Resources Limited Price and EPS Surprise
Canadian Natural Resources Limited Price and EPS Surprise | Canadian Natural Resources Limited Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Like any other energy player − primarily involved in exploration, development and production of crude oil − the fate of Canadian Natural Resources’ business is directly correlated with crude prices. Continued weakness in commodity prices has significantly affected the company’s revenues, earnings and cash flows.
However, efficiencies on the production front might be able to mitigate some of the damage. In particular, the company boasts of a strong and diverse production base with long-life and low decline rate assets.
Moreover, Canadian Natural Resources has been able to reduce unit costs that will provide some buffer amid the tumbling commodity prices.
Earnings Whispers
Our proven model does not conclusively show that Canadian Natural Resources will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 13 cents.
Zacks Rank: Canadian Natural Resources has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
While earnings beat looks uncertain for Canadian Natural Resources, here are some energy firms you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter:
PBF Logistics L.P. has an Earnings ESP of +10.91% and a Zacks Rank #1. The partnership is expected to release earnings results on May 4. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Global Partners L.P. (GLP - Free Report) has an Earnings ESP of +233.33% and a Zacks Rank #1. The partnership is anticipated to release earnings on May 9.
NOW Inc. (DNOW - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #2. The company is likely to release earnings on May 3.
Sell These Stocks
Now. Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>