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PSX, COG Q3 Earnings on Oct 26: Here are the Key Predictions
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Third-quarter 2018 earnings cycle is in full swing, with reports from 139 S&P 500 members already on board. Per the latest Earnings Trends dated Oct 24, total earnings of these companies are up 22% from the prior-year quarter’s tally on 8.7% higher revenues, with 82% companies delivering positive earnings surprises and 62.6% beating revenue estimates.
Combining the actual figures reported by the 27.8% of the index members and estimates of the pending 361 companies, total earnings are expected to improve 20% on a year-over-year basis on 7.2% higher revenues. Moreover, 10 of the 16 Zacks sectors are expected to register double-digit earnings growth. Notably, earnings growth pace is treading higher, while revenue growth rate is marginally below prior-year quarter’s level.
The revenue growth trend in this earnings season has been decelerating from the first half of 2018. The number of positive revenue surprises is treading below the recently reported quarters. In Q3, the number of revenue beats has been the lowest since Q1 of 2017 .Despite favorable earnings growth trend, a few headwinds have been witnessed. Negative factors like strong dollar, freight inflation, trade and economic weakness abroad are putting uncertainty on estimates for the upcoming periods.
All oil-producing companies are expected to benefit from recovering commodity prices, as they will be able to extract more value for products. The positivity in the oil prices was supported by a variety of catalysts, including concerns over U.S. sanctions on Iran, OPEC’s efforts to tighten the market, supply bottlenecks in the United States and strong global demand.
Natural gas prices at the end of Q3 were $3.00 MMBtu, which indicates healthier rates compared with year-ago quarter’s figures. Per data from the U.S. Energy Information Administration (EIA), average West Texas Intermediate (WTI) crude prices were recorded at $70.23 per barrel in the month of September 2018, considerably higher than the year-ago price of $49.82.
Needless to say, such favorable developments have buoyed investors’ optimism regarding the sector’s Q3 results.
The ‘Energy’ sector started off the earnings season on an impressive note. So far, three of the S&P energy companies, namely Schlumberger Limited (SLB - Free Report) , Halliburton Company (HAL - Free Report) and Kinder Morgan, Inc. (KMI - Free Report) have reported third-quarter results and each has managed to deliver an earnings beat.
Stocks to Watch for Earnings on Oct 26
Phillips 66 (PSX - Free Report) is a leading refining player. In the last reported quarter, the company delivered earnings of $2.80 per share which surpassed the Zacks Consensus Estimate of $2.16. The bottom line increased from the year-ago quarter’s level of $1.09.
The Houston, TX-based company’s earnings surprise history is impressive. The company delivered an average positive earnings surprise of 17.7% in the last four quarters.
According to our quantitative model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase odds of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that 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.
Our proven model does not show that the company is likely to beat earnings in the quarter under review. This is because the company has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot Oil & Gas Corp , is expected to report third-quarter 2018 results, before the opening bell. It is an independent energy exploration company with producing properties mainly in the continental United States.
In the last reported quarter, this upstream player’s earnings of 13 cents missed the Zacks Consensus Estimate of 19 cents. The downside can be attributed to lower-than-anticipated realized gas prices.
Cabot Oil & Gas Corporation Price and EPS Surprise
The company beat estimates in two of the last four quarters and delivered an average negative earnings surprise of 7.02%. However, our proven model does not show that Cabot will beat estimates in the upcoming quarterly results. The company has an Earnings ESP of -0.20% and carries 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.
Image: Bigstock
PSX, COG Q3 Earnings on Oct 26: Here are the Key Predictions
Third-quarter 2018 earnings cycle is in full swing, with reports from 139 S&P 500 members already on board. Per the latest Earnings Trends dated Oct 24, total earnings of these companies are up 22% from the prior-year quarter’s tally on 8.7% higher revenues, with 82% companies delivering positive earnings surprises and 62.6% beating revenue estimates.
Combining the actual figures reported by the 27.8% of the index members and estimates of the pending 361 companies, total earnings are expected to improve 20% on a year-over-year basis on 7.2% higher revenues. Moreover, 10 of the 16 Zacks sectors are expected to register double-digit earnings growth. Notably, earnings growth pace is treading higher, while revenue growth rate is marginally below prior-year quarter’s level.
The revenue growth trend in this earnings season has been decelerating from the first half of 2018. The number of positive revenue surprises is treading below the recently reported quarters. In Q3, the number of revenue beats has been the lowest since Q1 of 2017 .Despite favorable earnings growth trend, a few headwinds have been witnessed. Negative factors like strong dollar, freight inflation, trade and economic weakness abroad are putting uncertainty on estimates for the upcoming periods.
All oil-producing companies are expected to benefit from recovering commodity prices, as they will be able to extract more value for products. The positivity in the oil prices was supported by a variety of catalysts, including concerns over U.S. sanctions on Iran, OPEC’s efforts to tighten the market, supply bottlenecks in the United States and strong global demand.
Natural gas prices at the end of Q3 were $3.00 MMBtu, which indicates healthier rates compared with year-ago quarter’s figures. Per data from the U.S. Energy Information Administration (EIA), average West Texas Intermediate (WTI) crude prices were recorded at $70.23 per barrel in the month of September 2018, considerably higher than the year-ago price of $49.82.
Needless to say, such favorable developments have buoyed investors’ optimism regarding the sector’s Q3 results.
The ‘Energy’ sector started off the earnings season on an impressive note. So far, three of the S&P energy companies, namely Schlumberger Limited (SLB - Free Report) , Halliburton Company (HAL - Free Report) and Kinder Morgan, Inc. (KMI - Free Report) have reported third-quarter results and each has managed to deliver an earnings beat.
Stocks to Watch for Earnings on Oct 26
Phillips 66 (PSX - Free Report) is a leading refining player. In the last reported quarter, the company delivered earnings of $2.80 per share which surpassed the Zacks Consensus Estimate of $2.16. The bottom line increased from the year-ago quarter’s level of $1.09.
The Houston, TX-based company’s earnings surprise history is impressive. The company delivered an average positive earnings surprise of 17.7% in the last four quarters.
Phillips 66 Price and EPS Surprise
Phillips 66 Price and EPS Surprise | Phillips 66 Quote
According to our quantitative model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase odds of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that 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.
Our proven model does not show that the company is likely to beat earnings in the quarter under review. This is because the company has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot Oil & Gas Corp , is expected to report third-quarter 2018 results, before the opening bell. It is an independent energy exploration company with producing properties mainly in the continental United States.
In the last reported quarter, this upstream player’s earnings of 13 cents missed the Zacks Consensus Estimate of 19 cents. The downside can be attributed to lower-than-anticipated realized gas prices.
Cabot Oil & Gas Corporation Price and EPS Surprise
Cabot Oil & Gas Corporation Price and EPS Surprise | Cabot Oil & Gas Corporation Quote
The company beat estimates in two of the last four quarters and delivered an average negative earnings surprise of 7.02%. However, our proven model does not show that Cabot will beat estimates in the upcoming quarterly results. The company has an Earnings ESP of -0.20% and carries 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>>