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Antero Resources (AR) to Report Q3 Earnings: What's in Store?

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Antero Resources Corporation (AR - Free Report) is set to report third-quarter 2021 earnings after the closing bell on Oct 27.

In the last reported quarter, the company reported adjusted earnings of 14 cents per share, missing the Zacks Consensus Estimate of 24 cents due to lower gas-equivalent production volumes. This was partially offset by higher commodity prices.

In the trailing four quarters, the upstream energy player beat the Zacks Consensus Estimate for the bottom line two times and missed the same twice, the average surprise being 18.4%. This is depicted in the graph below:

Antero Resources Corporation Price and EPS Surprise

 

Let’s delve deeper into the factors that are expected to have influenced the company’s performance in the September-end quarter.

Estimate Trend

The Zacks Consensus Estimate for the third-quarter earnings per share of 36 cents has witnessed two upward revisions and one downward movement in the past 30 days. The estimate suggests a surge of 620% from the year-ago reported figure.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $1.26 billion indicates an increase of 40.2% from the year-ago reported figure.

Key Factors and Estimates

Although the global economy has been recovering from the pandemic-induced crisis and the natural gas price has rebounded, upstream energy companies like Antero Resources have been conservative on spending capital for producing more commodities.

The Zacks consensus estimate for the company’s third-quarter production is pegged at 304 billion cubic feet equivalent (Bcfe), indicating a decline from the year-ago reported level of 347 Bcfe.

The consensus estimate for the company’s third-quarter natural gas production is pegged at 210 Bcf, suggesting a decline from the year-ago reported level of 226 Bcf. As the natural gas segment is a significant contributor to the company’s overall business, lower production from the same is likely to have hurt its third-quarter performance. The negatives are expected to have been offset by favorable commodity prices.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Antero Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is -7.82%. This is because the Most Accurate Estimate is currently pegged at a profit of 33 cents per share, lower than the Zacks Consensus Estimate of a profit of 36 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Antero Resources currently sports a Zacks Rank #1.

Stocks to Consider

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

CNX Resources Corporation (CNX - Free Report) has an Earnings ESP of +2.79% and it sports a Zacks Rank #1 at present. The firm is scheduled to release earnings on Oct 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

Phillips 66 Partners LP (PSXP - Free Report) has an Earnings ESP of +6.71% and it currently flaunts a Zacks Rank of 2. It is scheduled to report third-quarter results on Oct 29.

SM Energy Company (SM - Free Report) has an Earnings ESP of +34.21% and a Zacks Rank of 1. It is scheduled to report third-quarter results on Oct 28.

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