Back to top

Image: Bigstock

Encana (ECA) Q2 Earnings and Revenues Beat Estimates

Read MoreHide Full Article

Have you been eager to see how Encana Corp. – one of the largest gas producers in North America – performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Calgary, Alberta-based behemoth’s earnings release this morning:

About Encana: Encana is a focused pure-play natural gas exploration and production company. It holds a highly competitive land and resource position in a number of the region's most promising shale and tight gas resource plays. This provides the company with a low risk, long-life, and sustainable growth profile.

Zacks Rank & Surprise History: Currently, Encana has a Zacks Rank #4 (Sell) but that could change following its second quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Coming to earnings surprise history, the company has an impressive record: the company has beaten estimates in each of the last four quarters.

Estimate Revision Trend: Investors should note that the earnings estimate revisions for Encana was revised downwards by 20% in the last 60 days. The Zacks Consensus Estimate remained the same over the last 7 days.

Encana Corporation Price and EPS Surprise

We have highlighted some of the key details from the just-released announcement below:

A Higher-than-Expected Profit: Encana announced operating earnings per share of 18 cents, ahead of the Zacks Consensus Estimate of 4 cents.

Revenue Surpassed Estimates: Total revenues came in at $1,083 million, which outperformed the Zacks Consensus Estimate of $773 million.

Key Stats: Quarterly natural gas production declined approximately 19% year over year to 1,146 million cubic feet per day, while liquids production fell 5% year over year to 124.9 thousand barrels per day.

Encana's realized natural gas price were $2.56 per thousand cubic feet, up 37.6% from the year-ago quarter level of $1.86. Meanwhile, realized liquids price rose to $41.97 per barrel from $38.47 in the second quarter of 2016, reflecting an increase of 9%.

Share Performance: Encana has lost around 18% of its value year to date versus the 14% decline of its industry.

Check back later for our full write up on this Encana earnings report later!

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>