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Is a Beat in Store for Range Resources (RRC) in Q2 Earnings?

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Range Resources Corporation (RRC - Free Report) is set to report second-quarter 2022 results on Jul 25, after the closing bell.

In the last reported quarter, Range Resources posted earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.15 owing to higher realizations of commodity prices.

In the trailing four quarters, Range Resources beat the Zacks Consensus Estimate for earnings once, met twice and missed once, delivering a surprise of 0.14%, on average. This is depicted in the graph below:

Estimate Trend

The Zacks Consensus Estimate for Range Resources’ second-quarter earnings per share of $1.20 has witnessed two upward and one downward movements in the past 60 days. The consensus estimate suggests an increase of 400% from the year-ago reported number.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $947.7 million indicates a 118% improvement.

Earnings Whispers

Our proven model predicts an earnings beat for Range 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: Range Resources has an Earnings ESP of +11.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Key Factors

The pricing scenario of natural gas was considerably higher in the second quarter of this year compared with the year-ago period.  Per data from the U.S. Energy Information Administration, the monthly Henry Hub natural gas spot prices for April, May and June were $6.60 per million Btu, $8.14 per million Btu and $7.70 per million Btu, respectively. The commodity prices were higher than last year’s prices of $2.66 per million Btu, $2.91 per million Btu and $3.26 per million Btu, respectively. This is likely to have positively impacted the quarter’s earnings.

High gas price was favorable for exploration and production operations of RRC in the June quarter since the firm is a leading upstream player in the United States with a strong footprint on stacked-pay projects in the Appalachian Basin.

Other Stocks That Warrant a Look

Here are some other firms that you may want to consider as these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Schlumberger Limited (SLB - Free Report) has an Earnings ESP of +1.15% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Schlumberger is scheduled to release second-quarter results on Jul 22. The Zacks Consensus Estimate for SLB’s earnings is pegged at 40 cents per share, suggesting an increase of 33.3% from the prior-year reported figure.

BP plc (BP - Free Report) has an Earnings ESP of +8.64% and a Zacks Rank of 1.

BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for BP’s earnings is pegged at $2.00 per share, suggesting a significant increase from the prior-year reported figure.

Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +10.22% and a Zacks Rank #1.

Valero Energy is scheduled to release second-quarter earnings on Jul 28. The Zacks Consensus Estimate for Valero Energy’s earnings is pegged at $8.38 per share, suggesting a massive increase from the prior-year reported figure.

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