It has been more than a month since the last earnings report for Encana Corporation . Shares have lost about 6.4% 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.
Third-Quarter 2017 Results
Encana Corporation reported third-quarter 2017 operating earnings of 2 cents per share, missing the Zacks Consensus Estimate of 5 cents. Further, the bottom line declined from 4 cents per share reported in the year-ago quarter. Lower production adversely impacted results.
Quarterly revenues of $861 million however beat the Zacks Consensus Estimate of $827 million due to a rise in realized commodity prices. However, revenues were 12.1% lower than the prior-year figure of $979 million.
Production & Prices
Quarterly natural gas production declined approximately 29% year over year to 939 million cubic feet per day, while liquids production rose 9% year over year to 127.5 thousand barrels per day. Total production declined 16% to 284 thousand barrels of oil equivalent per day (MBoe/d).
Encana's realized natural gas price was $2.23 per thousand cubic feet, up 10.4% from the year-ago quarter level of $2.02. Meanwhile, liquids price rose marginally to $41.86 per barrel from $41.82 in the third quarter of 2016.
Costs & Expenses
Total operating expenses increased 1.7% from third-quarter 2016 to $865 million. The rise is primarily attributed to an increase in depreciation, depletion and amortization charges.
Encana reported operating costs of $132 million, 9% lower than the year-ago quarter level. Also, transportation and processing expenses fell 1.5% to $199 million. Administrative expenses were down 5.5% to 86 million.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $473 million. As of Sep 30, 2017, cash and cash equivalent was $889 million and long-term debt was $4,197 million. This, in turn, represents a debt-to-capitalization ratio of 37.6%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Encana's stock has a poor Growth Score of F, a grade with the same score on the momentum front. However, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Encana (ECA) Down 6.4% Since Earnings Report: Can It Rebound?
It has been more than a month since the last earnings report for Encana Corporation . Shares have lost about 6.4% 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.
Third-Quarter 2017 Results
Encana Corporation reported third-quarter 2017 operating earnings of 2 cents per share, missing the Zacks Consensus Estimate of 5 cents. Further, the bottom line declined from 4 cents per share reported in the year-ago quarter. Lower production adversely impacted results.
Quarterly revenues of $861 million however beat the Zacks Consensus Estimate of $827 million due to a rise in realized commodity prices. However, revenues were 12.1% lower than the prior-year figure of $979 million.
Production & Prices
Quarterly natural gas production declined approximately 29% year over year to 939 million cubic feet per day, while liquids production rose 9% year over year to 127.5 thousand barrels per day. Total production declined 16% to 284 thousand barrels of oil equivalent per day (MBoe/d).
Encana's realized natural gas price was $2.23 per thousand cubic feet, up 10.4% from the year-ago quarter level of $2.02. Meanwhile, liquids price rose marginally to $41.86 per barrel from $41.82 in the third quarter of 2016.
Costs & Expenses
Total operating expenses increased 1.7% from third-quarter 2016 to $865 million. The rise is primarily attributed to an increase in depreciation, depletion and amortization charges.
Encana reported operating costs of $132 million, 9% lower than the year-ago quarter level. Also, transportation and processing expenses fell 1.5% to $199 million. Administrative expenses were down 5.5% to 86 million.
Capital Spending and Balance Sheet
Encana's capital investments during the quarter were $473 million. As of Sep 30, 2017, cash and cash equivalent was $889 million and long-term debt was $4,197 million. This, in turn, represents a debt-to-capitalization ratio of 37.6%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions.
Encana Corporation Price and Consensus
Encana Corporation Price and Consensus | Encana Corporation Quote
VGM Scores
At this time, Encana's stock has a poor Growth Score of F, a grade with the same score on the momentum front. However, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.