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What's in the Cards for ConocoPhillips (COP) in Q3 Earnings?
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ConocoPhillips (COP - Free Report) is scheduled to report third-quarter 2018 results on Oct 25, before the opening bell.
In the last reported quarter, the upstream energy company posted an earnings surprise of 2.8%. ConocoPhillips recorded an average positive earnings surprise of 27.6% in the last four quarters. Let’s see how things are shaping up prior to the announcement.
Let’s take a look at the estimate revision trend to get a clear picture of what analysts expect from the company this earnings season.
The Zacks Consensus Estimate for third-quarter earnings of $1.17 has witnessed one upward revision and a downward trend by firms in the past seven days. It reflects a whopping improvement of about 631.3% from the year-ago quarter’s tally.
Further, the Zacks Consensus Estimate for third-quarter revenues is pegged at $9,456 million, indicating a rise of 31.4% from the year-ago quarter’s figure.
Factors to Consider
The Zacks Consensus Estimate for average sale price of natural gas is pegged at $5.52 per thousand cubic feet (Mcf), reflecting a rise from preceding quarter’s tally of $5.18 per Mcf and year-ago quarter’s figure of $4.11 per Mcf.
Average sales price of natural gas liquids for the third quarter is estimated at $20.39 per barrel, indicating a decline from $29.94 a barrel in the preceding quarter.
Average crude oil sales price is expected at $66 per barrel, reflecting an increase from the year-ago quarter’s figure $49.39. However, the figure reflects a downfall from the preceding quarter’s tally of $71. Moreover, production of crude oil per day for the third quarter is expected to rise to 626 MBD from the year-ago quarter’s 420 MBD.
Higher expectation of prices for natural gas and crude oil will likely favor the company’s third-quarter earnings.
Earnings Whispers
Our proven model does not show that ConocoPhillips is likely to beat earnings this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: Earnings ESP for the company is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.17. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ConocoPhillips carries a Zacks Rank #2.
Please note that we caution investors against stocks with a Zacks Rank #4 or5 (Sell Rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
During the quarter, the company’s shares surged 11.1% compared with the industry’s 4.8% rise.
Stocks to Consider
Here are a few other stocks that you may consider on the basis of our model. These have the right combination of elements to post an earnings beat in the quarter to be reported.
Plano, TX-based Denbury Resources Inc is an exploration and production (E&P) company engaged in the acquisition, development, operation as well as exploration of oil and natural gas properties. The company has an Earnings ESP of +13.04% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise Products Partners L.P. (EPD - Free Report) , based in Houston, TX, is a leading midstream energy players in North America. The company has an Earnings ESP of +3.24% and carries a Zacks Rank #2.
Houston, TX-based EOG Resources, Inc (EOG - Free Report) is a major independent oil and gas exploration and production player. The company has an Earnings ESP of +1.71% and a Zacks Rank #3.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
What's in the Cards for ConocoPhillips (COP) in Q3 Earnings?
ConocoPhillips (COP - Free Report) is scheduled to report third-quarter 2018 results on Oct 25, before the opening bell.
In the last reported quarter, the upstream energy company posted an earnings surprise of 2.8%. ConocoPhillips recorded an average positive earnings surprise of 27.6% in the last four quarters. Let’s see how things are shaping up prior to the announcement.
ConocoPhillips Price and EPS Surprise
ConocoPhillips Price and EPS Surprise | ConocoPhillips Quote
Which Way are the Estimates Treading?
Let’s take a look at the estimate revision trend to get a clear picture of what analysts expect from the company this earnings season.
The Zacks Consensus Estimate for third-quarter earnings of $1.17 has witnessed one upward revision and a downward trend by firms in the past seven days. It reflects a whopping improvement of about 631.3% from the year-ago quarter’s tally.
Further, the Zacks Consensus Estimate for third-quarter revenues is pegged at $9,456 million, indicating a rise of 31.4% from the year-ago quarter’s figure.
Factors to Consider
The Zacks Consensus Estimate for average sale price of natural gas is pegged at $5.52 per thousand cubic feet (Mcf), reflecting a rise from preceding quarter’s tally of $5.18 per Mcf and year-ago quarter’s figure of $4.11 per Mcf.
Average sales price of natural gas liquids for the third quarter is estimated at $20.39 per barrel, indicating a decline from $29.94 a barrel in the preceding quarter.
Average crude oil sales price is expected at $66 per barrel, reflecting an increase from the year-ago quarter’s figure $49.39. However, the figure reflects a downfall from the preceding quarter’s tally of $71. Moreover, production of crude oil per day for the third quarter is expected to rise to 626 MBD from the year-ago quarter’s 420 MBD.
Higher expectation of prices for natural gas and crude oil will likely favor the company’s third-quarter earnings.
Earnings Whispers
Our proven model does not show that ConocoPhillips is likely to beat earnings this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: Earnings ESP for the company is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.17. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ConocoPhillips carries a Zacks Rank #2.
Please note that we caution investors against stocks with a Zacks Rank #4 or5 (Sell Rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Price Performance
During the quarter, the company’s shares surged 11.1% compared with the industry’s 4.8% rise.
Stocks to Consider
Here are a few other stocks that you may consider on the basis of our model. These have the right combination of elements to post an earnings beat in the quarter to be reported.
Plano, TX-based Denbury Resources Inc is an exploration and production (E&P) company engaged in the acquisition, development, operation as well as exploration of oil and natural gas properties. The company has an Earnings ESP of +13.04% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise Products Partners L.P. (EPD - Free Report) , based in Houston, TX, is a leading midstream energy players in North America. The company has an Earnings ESP of +3.24% and carries a Zacks Rank #2.
Houston, TX-based EOG Resources, Inc (EOG - Free Report) is a major independent oil and gas exploration and production player. The company has an Earnings ESP of +1.71% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>