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Is a Beat in Store for Antero Resources (AR) in Q1 Earnings?

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Antero Resources (AR - Free Report) is set to report first-quarter 2022 results on Apr 27, after the closing bell.

In the last reported quarter, the upstream energy player reported earnings of 46 cents per share, missing the Zacks Consensus Estimate of 64 cents owing to lower gas-equivalent production volumes.

In the trailing four quarters, Antero Resources beat the Zacks Consensus Estimate for earnings once and missed thrice, delivering a negative earnings surprise of 19.4%, on average. This is depicted in the graph below:

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of $1.05 has witnessed two upward and no downward movement in the past 30 days. The consensus estimate suggests a year-over-year increase of 69.4%.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $1.6 billion indicates a 29.7% improvement from the year-ago reported figure.

Earnings Whispers

Our proven model predicts 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.

Earnings ESP: Antero Resources has an Earnings ESP of +2.70%. 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.

Factors Driving the Better-Than-Expected Earnings

In the March quarter of this year, natural gas and oil prices were much higher than the year-ago quarter. Higher gas and oil price was favorable for Antero Resources’ exploration and production activities. This is because AR has a strong footprint in the Appalachian Basin in West Virginia and Ohio, which is a prolific gas play.

The Zacks Consensus Estimate for Antero Resources’ daily combined production is pegged at 3,152 million cubic feet equivalent per day (MMcfe/d), suggesting a decline from 3,322 MMcfe/d in the year-ago quarter.

Thus, although production is likely to have declined, higher commodity prices are expected to have more than offset the negative.

Other Stocks That Warrant a Look

Here are some other 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:

Matador Resources Company (MTDR - Free Report) has an Earnings ESP of +2.75% and is a Zacks #1 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Matador is scheduled to release first-quarter results on Apr 26. The Zacks Consensus Estimate for Matador’s quarterly earnings is pegged at $1.97 per share, suggesting an increase of 177.5% from the prior-year reported figure.

EOG Resources (EOG - Free Report) has an Earnings ESP of +3.30% and is a Zacks #2 Ranked player at present.

EOG Resources is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for EOG’s quarterly earnings is pegged at $3.36 per share, suggesting an increase of 107.4% from the prior-year figure.

ConocoPhillips (COP - Free Report) has an Earnings ESP of +11.44% and flaunts a Zacks Rank #1.

ConocoPhillips is scheduled to release first-quarter earnings on May 5. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.93 per share, suggesting a massive increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.