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Southwestern (SWN) to Report Q2 Earnings: What's in the Cards?

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Southwestern Energy Company (SWN - Free Report) is set to report second-quarter 2022 earnings results on Aug 4, after the closing bell.

In the last reported quarter, the upstream energy player’s earnings of 40 cents per share beat the Zacks Consensus Estimate of 36 cents, owing to higher natural gas production volumes and commodity price realizations.

In the trailing four quarters, Southwestern’s bottom line beat the Zacks Consensus Estimate thrice and missed the same once, the average surprise being 3.2%. This is depicted in the graph below:

Southwestern Energy Company Price and EPS Surprise

 

Southwestern Energy Company Price and EPS Surprise

Southwestern Energy Company price-eps-surprise | Southwestern Energy Company Quote

Let’s delve into the factors that are anticipated to have influenced Southwestern’s performance in the June-end quarter.

Estimate Trend

The Zacks Consensus Estimate for its second-quarter earnings per share of 31 cents has witnessed four upward revisions and four downward movements in the past 30 days. The estimate suggests a 63.2% increase from the year-ago reported figure.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $1.8 billion indicates a 70.3% improvement from the year-ago reported figure.

Factors to Consider

In the June-end quarter of 2022, oil and natural gas prices were significantly higher than the year-ago quarter. Higher commodity prices are expected to have aided Southwestern’s operations in the second quarter, as the company holds significant properties in the prolific Appalachian Basin, which is famous for its natural gas reservoirs.

The Zacks Consensus Estimate for Southwestern’s total production is pegged at 429 billion cubic feet equivalent (Bcfe), suggesting an increase from 276 Bcfe reported in the year-ago quarter. Moreover, the Zacks Consensus Estimate for its total gas production is pegged at 378 billion cubic feet (Bcf), indicating an improvement from 219 Bcf recorded in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Southwestern 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. As you can see, that is not the case here.

Earnings ESP: Southwestern’s Earnings ESP is 0.00%. This is because the Most Accurate Estimate is currently pegged at earnings of 31 cents per share, in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Stocks to Consider

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

Suncor Energy, Inc. (SU - Free Report) has an Earnings ESP of +11.91% and is currently a Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Suncor is scheduled to release second-quarter results on Aug 4. The Zacks Consensus Estimate for SU’s quarterly earnings is pegged at $1.74 per share, suggesting an improvement from the prior-year figure.

ConocoPhillips (COP - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank #3.

ConocoPhillips is scheduled to release second-quarter earnings on Aug 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $3.78 per share, suggesting a significant increase from the prior-year reported figure.

Sunoco LP (SUN - Free Report) currently has an Earnings ESP of +16.67% and a Zacks Rank #3.

Sunoco is scheduled to release second-quarter earnings on Aug 3. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.14 per share, suggesting a decline from the prior-year reported figure.

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

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