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Oil Stocks Reporting Q4 Earnings on Feb 6: PXD, APC & PAGP
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With a host of S&P 500 members expected to release results by the end of this week, we are in the thick of the fourth-quarter earnings season.
Picture So Far
Around 251 S&P 500 members, representing 50.2% of the index's total market capitalization, have released fourth-quarter results. Per the latest Earnings Trends, total earnings for these companies are up 16% year over year on 10.5% higher revenues, with 80.5% positive earnings surprises and 78.1% beating revenue estimates.
At this stage, total earnings for the companies in the Energy sector are up 146% year on 23.1% higher revenues. However, quite a few companies are scheduled to post earnings in the upcoming days and events are shaping up favorably for their reports.
Energy: 2017 Recap
In 2017, Energy was the strongest S&P sector. In November 2017, the historic OPEC-led production cut deal to alleviate a supply glut was able to buoy oil prices and stabilize them around the psychologically important $50 per barrel threshold. The commodity witnessed a stellar run on optimism around the agreement and improving outlook for oil stocks.
We would like to remind investors that the Oil/Energy sector displayed considerable upside potential in fourth-quarter 2017 after a prolonged period of weakness. The improvement in the sector’s performance drove the aggregate growth for the S&P 500 index. In fact, the most important feature of this earnings season seems to be the positive revenue momentum, in terms of growth as well as beats.
Let's take a look at how oil and gas prices have trended in the fourth quarter of 2017.
Strong Q4 Earnings Growth Prediction
A look at the fourth-quarter earnings season reflects that the overall results of the Oil/Energy sector are spectacular, which boosted the S&P 500 index’s aggregate growth.
The October-December 2017 period turned out to be rather good with oil and natural gas prices benefitting from easier comparison figures from the year-ago quarter.
For the sector components on the S&P 500 index, total earnings witnessed strong year-over-year dollar growth on 23.1% higher revenues.
Notably, oil and gas prices during the quarter supported growth. Prices of oil at the end of the quarter improved, amid persistent decline in domestic inventories and improvement of supply-demand narrative. With fundamentals pointing to a tighter market, oil price at the end of the fourth quarter was $57.88 per barrel, up about 2.2% sequentially and 11.4% year over year. A year ago, crude prices were around $51.97 per barrel.
The picture looks rather encouraging for first-quarter fiscal 2018 as well. This is not surprising, considering that oil and gas are both averaging higher compared with the second and fourth quarters of 2016, when energy companies reported unusually low bottom line.
Energy Stocks Reporting on Feb 6
Let’s see what’s in store for three energy companies that are slated to release their quarterly numbers.
Texas-based upstream player Pioneer Natural Resources Company (PXD - Free Report) is slated to report results after the closing bell.
According to our quantitative model, a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Last quarter, the company posted an average positive earnings surprise of 60% on improved drilling program and higher price realizations. In the last four quarters, Pioneer Natural’s average positive earnings surprise was 67.6%.
Pioneer Natural is expected to maintain its earnings streak in the fourth quarter of 2017 as it has the right combination of two key ingredients. The company has an Earnings ESP of +5.48% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural Resources Company Price and EPS Surprise
Headquartered in The Woodlands, TX, Anadarko Petroleum Corp. is another energy company set to report fourth-quarter 2017 results, after the market closes. The company — which is one of the largest independent oil and natural gas exploration and production (E&P) companies of the world — has a dismal track of lagging estimates in all of the last four quarters.
However, Anadarko is likely to break the trend in the to-be-reported quarter. This is because the company has a Zacks Rank #3 and an Earnings ESP of +110.07%.
Anadarko Petroleum Corporation Price and EPS Surprise
Based in Houston, TX Plains GP Holdings LP (PAGP - Free Report) holds a non-economic controlling stake in the general partner of Plains All American Pipeline LP (PAA - Free Report) . In North America, Plains All American is among the leading midstream energy players with extensive energy infrastructure.
The company is scheduled to report fourth-quarter 2017 results after the closing bell. Last quarter, Plains GP Holdings missed earnings by 89.66%.
In the to-be-rported quarter, the company is unlikely to beat estimates as it has an Earnings ESP of +13.18% and a Zacks Rank #4.
Plains Group Holdings, L.P. Price and EPS Surprise
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Oil Stocks Reporting Q4 Earnings on Feb 6: PXD, APC & PAGP
With a host of S&P 500 members expected to release results by the end of this week, we are in the thick of the fourth-quarter earnings season.
Picture So Far
Around 251 S&P 500 members, representing 50.2% of the index's total market capitalization, have released fourth-quarter results. Per the latest Earnings Trends, total earnings for these companies are up 16% year over year on 10.5% higher revenues, with 80.5% positive earnings surprises and 78.1% beating revenue estimates.
At this stage, total earnings for the companies in the Energy sector are up 146% year on 23.1% higher revenues. However, quite a few companies are scheduled to post earnings in the upcoming days and events are shaping up favorably for their reports.
Energy: 2017 Recap
In 2017, Energy was the strongest S&P sector. In November 2017, the historic OPEC-led production cut deal to alleviate a supply glut was able to buoy oil prices and stabilize them around the psychologically important $50 per barrel threshold. The commodity witnessed a stellar run on optimism around the agreement and improving outlook for oil stocks.
We would like to remind investors that the Oil/Energy sector displayed considerable upside potential in fourth-quarter 2017 after a prolonged period of weakness. The improvement in the sector’s performance drove the aggregate growth for the S&P 500 index. In fact, the most important feature of this earnings season seems to be the positive revenue momentum, in terms of growth as well as beats.
Let's take a look at how oil and gas prices have trended in the fourth quarter of 2017.
Strong Q4 Earnings Growth Prediction
A look at the fourth-quarter earnings season reflects that the overall results of the Oil/Energy sector are spectacular, which boosted the S&P 500 index’s aggregate growth.
The October-December 2017 period turned out to be rather good with oil and natural gas prices benefitting from easier comparison figures from the year-ago quarter.
For the sector components on the S&P 500 index, total earnings witnessed strong year-over-year dollar growth on 23.1% higher revenues.
Notably, oil and gas prices during the quarter supported growth. Prices of oil at the end of the quarter improved, amid persistent decline in domestic inventories and improvement of supply-demand narrative. With fundamentals pointing to a tighter market, oil price at the end of the fourth quarter was $57.88 per barrel, up about 2.2% sequentially and 11.4% year over year. A year ago, crude prices were around $51.97 per barrel.
The picture looks rather encouraging for first-quarter fiscal 2018 as well. This is not surprising, considering that oil and gas are both averaging higher compared with the second and fourth quarters of 2016, when energy companies reported unusually low bottom line.
Energy Stocks Reporting on Feb 6
Let’s see what’s in store for three energy companies that are slated to release their quarterly numbers.
Texas-based upstream player Pioneer Natural Resources Company (PXD - Free Report) is slated to report results after the closing bell.
According to our quantitative model, a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
We caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Last quarter, the company posted an average positive earnings surprise of 60% on improved drilling program and higher price realizations. In the last four quarters, Pioneer Natural’s average positive earnings surprise was 67.6%.
Pioneer Natural is expected to maintain its earnings streak in the fourth quarter of 2017 as it has the right combination of two key ingredients. The company has an Earnings ESP of +5.48% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural Resources Company Price and EPS Surprise
Pioneer Natural Resources Company Price and EPS Surprise | Pioneer Natural Resources Company Quote
Headquartered in The Woodlands, TX, Anadarko Petroleum Corp. is another energy company set to report fourth-quarter 2017 results, after the market closes. The company — which is one of the largest independent oil and natural gas exploration and production (E&P) companies of the world — has a dismal track of lagging estimates in all of the last four quarters.
However, Anadarko is likely to break the trend in the to-be-reported quarter. This is because the company has a Zacks Rank #3 and an Earnings ESP of +110.07%.
Anadarko Petroleum Corporation Price and EPS Surprise
Anadarko Petroleum Corporation Price and EPS Surprise | Anadarko Petroleum Corporation Quote
Based in Houston, TX Plains GP Holdings LP (PAGP - Free Report) holds a non-economic controlling stake in the general partner of Plains All American Pipeline LP (PAA - Free Report) . In North America, Plains All American is among the leading midstream energy players with extensive energy infrastructure.
The company is scheduled to report fourth-quarter 2017 results after the closing bell. Last quarter, Plains GP Holdings missed earnings by 89.66%.
In the to-be-rported quarter, the company is unlikely to beat estimates as it has an Earnings ESP of +13.18% and a Zacks Rank #4.
Plains Group Holdings, L.P. Price and EPS Surprise
Plains Group Holdings, L.P. Price and EPS Surprise | Plains Group Holdings, L.P. Quote
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>