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What's in Store for Antero Resources' (AR) Q2 Earnings?

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

In the last reported quarter, the upstream energy player reported adjusted earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.07, owing to higher realizations of commodity prices. The positives were partially offset by lower production volumes.

In the trailing four quarters, Antero Resources beat the Zacks Consensus Estimate for earnings once and missed the same thrice, delivering a negative earnings surprise of 26.2%, on average. This is depicted in the graph below:

Antero Resources Corporation Price and EPS Surprise

 

Antero Resources Corporation Price and EPS Surprise

Antero Resources Corporation price-eps-surprise | Antero Resources Corporation Quote

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

Estimate Trend

The Zacks Consensus Estimate for second-quarter earnings per share of $1.95 has witnessed four upward revisions and no downward movement in the past 30 days. The consensus estimate suggests a significant year-over-year increase.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $1.9 billion indicates a 286.5% improvement from the year-ago reported figure.

Factors to Note

In the June-end quarter of this year, oil and natural gas prices were much higher than the year-ago quarter. Higher commodity prices were favorable for Antero Resources’ exploration and production activities in the second quarter as it 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 3,191 million cubic feet equivalent per day (MMcfe/d), suggesting a decline from 3,324 MMcfe/d reported in the year-ago quarter. Although production is likely to have declined, higher commodity prices are expected to have more than offset the negative.

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.

Earnings ESP: Antero Resources has an Earnings ESP of -2.05%. This is because the Most Accurate Estimate is currently pegged at earnings of $1.91 per share, below the Zacks Consensus Estimate of $1.95 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Antero Resources currently carries a Zacks Rank #2.

Stocks That Warrant a Look

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:

EQT Corporation (EQT - Free Report) has an Earnings ESP of +4.15% and is a Zacks #2 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

EQT is scheduled to release second-quarter results on Jul 27. The Zacks Consensus Estimate for EQT’s quarterly earnings is pegged at 73 cents per share, suggesting an increase of 943% from the prior-year reported figure.

Equinor ASA (EQNR - Free Report) has an Earnings ESP of +13.89% and is a Zacks #1 Ranked player at present.

Equinor is scheduled to release second-quarter results on Jul 27. The Zacks Consensus Estimate for EQNR’s quarterly earnings is pegged at $1.44 per share, suggesting an increase of 194% from the prior-year figure.

Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +10.22% and currently flaunts 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 $8.78 per share, suggesting a massive increase from the prior-year reported figure.

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