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EQT Corp (EQT) Down 4.5% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 4.5% 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 the most recent earnings report in order to get a better handle on the important catalysts.
First-Quarter 2017 Results
EQT Corporation reported first-quarter 2017 adjusted earnings of $0.44 per share, which lagged the Zacks Consensus Estimate of $0.45 owing to significantly higher operating expenses. Earnings, however, increased from the prior-year level of $0.07, primarily due to improved production and higher realized prices.
Net operating revenue in the quarter jumped 64.7% year over year to $897.5 million. The top line also surpassed the Zacks Consensus Estimate of $704.41 million.
Segment Details
EQT Production reported first-quarter operating revenues of $828.7 million, up 71.3% year over year. The upside was mainly driven by higher average realized price, an improvement in production sales volume, and increase in pipeline and net marketing services revenues. This was partially offset by increased operating expenses.
Operating income was $257.4 million. The segment incurred a loss of $5.5 million in first-quarter 2016.
In the EQT Gathering segment, net gathering revenue increased 4.4% year over year to $102.3 million due to 3% higher gathered volumes.
Operating income jumped 1.4% year over year to $73.6 million in the reported quarter.
In the EQT Transmission segment, net transmission revenue grew 15.2% to $101.1 million.
Operating income jumped 11% year over year to $71.5 million in the reported quarter.
Financials
The company’s adjusted operating cash flow was $322.3 million during the quarter, up 48.3% year over year.
EQT Corp.’s capital expenditure totaled $1,015.7 million in the quarter. This includes $945.5 million spent on EQT Production, $48.8 million spent on EQT Gathering and $21.4 million spent on EQT Transmission.
Guidance
Production sales volume for 2017 is projected at 835–855 billion cubic feet equivalent (Bcfe). Liquids volume is estimated at 12,060–12,460 thousand barrel of oil equivalent (MBBl). Production sales volume for second-quarter 2017 is projected at 190–195 Bcfe. Liquids volume is expected in the range of 2,955–2,975 MBBls.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two upward revisions for the current quarter compared to two downward. In the past month, the consensus estimate has shifted upward by 48.1% due to these changes.
At this time, EQT Corp.'s stock has a great Growth Score of 'A', though it is lagging a bit on the momentum frontwith a 'C'. Charting a somewhat similar path, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for growth investors than momentum and value investors.
Outlook
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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EQT Corp (EQT) Down 4.5% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 4.5% 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 the most recent earnings report in order to get a better handle on the important catalysts.
First-Quarter 2017 Results
EQT Corporation reported first-quarter 2017 adjusted earnings of $0.44 per share, which lagged the Zacks Consensus Estimate of $0.45 owing to significantly higher operating expenses. Earnings, however, increased from the prior-year level of $0.07, primarily due to improved production and higher realized prices.
Net operating revenue in the quarter jumped 64.7% year over year to $897.5 million. The top line also surpassed the Zacks Consensus Estimate of $704.41 million.
Segment Details
EQT Production reported first-quarter operating revenues of $828.7 million, up 71.3% year over year. The upside was mainly driven by higher average realized price, an improvement in production sales volume, and increase in pipeline and net marketing services revenues. This was partially offset by increased operating expenses.
Operating income was $257.4 million. The segment incurred a loss of $5.5 million in first-quarter 2016.
In the EQT Gathering segment, net gathering revenue increased 4.4% year over year to $102.3 million due to 3% higher gathered volumes.
Operating income jumped 1.4% year over year to $73.6 million in the reported quarter.
In the EQT Transmission segment, net transmission revenue grew 15.2% to $101.1 million.
Operating income jumped 11% year over year to $71.5 million in the reported quarter.
Financials
The company’s adjusted operating cash flow was $322.3 million during the quarter, up 48.3% year over year.
EQT Corp.’s capital expenditure totaled $1,015.7 million in the quarter. This includes $945.5 million spent on EQT Production, $48.8 million spent on EQT Gathering and $21.4 million spent on EQT Transmission.
Guidance
Production sales volume for 2017 is projected at 835–855 billion cubic feet equivalent (Bcfe). Liquids volume is estimated at 12,060–12,460 thousand barrel of oil equivalent (MBBl). Production sales volume for second-quarter 2017 is projected at 190–195 Bcfe. Liquids volume is expected in the range of 2,955–2,975 MBBls.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two upward revisions for the current quarter compared to two downward. In the past month, the consensus estimate has shifted upward by 48.1% 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 great Growth Score of 'A', though it is lagging a bit on the momentum frontwith a 'C'. Charting a somewhat similar path, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for growth investors than momentum and value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.