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Is a Beat in Store for Canadian Natural (CNQ) in Q3 Earnings?
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Canadian Natural Resources Limited (CNQ - Free Report) is set to release third-quarter results on Nov 3. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $2.09 per share on revenues of $8 billion.
Let’s delve into the factors that might have influenced this independent energy company’s performance in the September quarter. But it’s worth taking a look at CNQ’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Calgary, Alberta-based upstream operator beat the consensus mark on higher commodity price realizations and production. CNQ had reported adjusted earnings per share of $2.55, 47 cents above the Zacks Consensus Estimate. Revenues of $9 billion generated by the firm also came in above the Zacks Consensus Estimate of $7.8 billion.
The company beat the Zacks Consensus Estimate in each of the last four quarters, which resulted in an earnings surprise of 15.5%, on average. This is depicted in the graph below:
Canadian Natural Resources Limited Price and EPS Surprise
The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 48.2% improvement year over year. The Zacks Consensus Estimate for revenues suggests a 30.3% increase from the year-ago period.
Factors to Consider
Canadian Natural Resources is expected to have benefited from strong commodity price realizations. In the April-to-June period, the company’s realized natural gas price surged 120.4% to C$5.95 per thousand cubic feet from the year-ago level of C$2.70. Moreover, the realized oil and NGL price jumped 88.3% to C$115.26 per barrel from C$61.20 in the second quarter of 2021. The uptick is most likely to have continued in the third quarter, with oil and gas prices remaining strong on the back of geopolitical tensions and tight fundamentals. This price boost is likely to have buoyed the revenues and cash flows of the Canadian firm.
The company is also expected to have reaped the reward of higher production during the quarter. During the previous three-month period, Canadian Natural reported an output of 1,211,147 barrels of oil equivalent per day, up about 6% from a year ago. The momentum is likely to have continued in the to-be-reported quarter as CNQ continues to churn out impressive volumes from its broad portfolio of low-risk exploration and development projects with strong international exposure.
Why a Likely Positive Surprise?
Our proven model predicts a likely earnings beat for CNQ this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Canadian Natural Resources has an Earnings ESP of +0.48% and a Zacks Rank #3.
Other Stocks to Consider
CNQ is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 7.
For 2022, Cactus has a projected earnings growth rate of 144.4%. Valued at around $3.9 billion, WHD has gained 17.1% in a year.
HF Sinclair Corporation (DINO - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 7.
For 2022, HF Sinclair has a projected earnings growth rate of 846.1%. Valued at around $13.3 billion, DINO has gained 81% in a year.
Murphy Oil Corporation (MUR - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov 3.
Murphy Oil topped the Zacks Consensus Estimate by an average of 27.1% in the trailing four quarters, including a 35.9% beat in Q2. Valued at around $7.4 billion, MUR has gained 67.8% in a year.
Image: Bigstock
Is a Beat in Store for Canadian Natural (CNQ) in Q3 Earnings?
Canadian Natural Resources Limited (CNQ - Free Report) is set to release third-quarter results on Nov 3. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $2.09 per share on revenues of $8 billion.
Let’s delve into the factors that might have influenced this independent energy company’s performance in the September quarter. But it’s worth taking a look at CNQ’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Calgary, Alberta-based upstream operator beat the consensus mark on higher commodity price realizations and production. CNQ had reported adjusted earnings per share of $2.55, 47 cents above the Zacks Consensus Estimate. Revenues of $9 billion generated by the firm also came in above the Zacks Consensus Estimate of $7.8 billion.
The company beat the Zacks Consensus Estimate in each of the last four quarters, which resulted in an earnings surprise of 15.5%, on average. This is depicted in the graph below:
Canadian Natural Resources Limited Price and EPS Surprise
Canadian Natural Resources Limited price-eps-surprise | Canadian Natural Resources Limited Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 48.2% improvement year over year. The Zacks Consensus Estimate for revenues suggests a 30.3% increase from the year-ago period.
Factors to Consider
Canadian Natural Resources is expected to have benefited from strong commodity price realizations. In the April-to-June period, the company’s realized natural gas price surged 120.4% to C$5.95 per thousand cubic feet from the year-ago level of C$2.70. Moreover, the realized oil and NGL price jumped 88.3% to C$115.26 per barrel from C$61.20 in the second quarter of 2021. The uptick is most likely to have continued in the third quarter, with oil and gas prices remaining strong on the back of geopolitical tensions and tight fundamentals. This price boost is likely to have buoyed the revenues and cash flows of the Canadian firm.
The company is also expected to have reaped the reward of higher production during the quarter. During the previous three-month period, Canadian Natural reported an output of 1,211,147 barrels of oil equivalent per day, up about 6% from a year ago. The momentum is likely to have continued in the to-be-reported quarter as CNQ continues to churn out impressive volumes from its broad portfolio of low-risk exploration and development projects with strong international exposure.
Why a Likely Positive Surprise?
Our proven model predicts a likely earnings beat for CNQ this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Canadian Natural Resources has an Earnings ESP of +0.48% and a Zacks Rank #3.
Other Stocks to Consider
CNQ is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 7.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, Cactus has a projected earnings growth rate of 144.4%. Valued at around $3.9 billion, WHD has gained 17.1% in a year.
HF Sinclair Corporation (DINO - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 7.
For 2022, HF Sinclair has a projected earnings growth rate of 846.1%. Valued at around $13.3 billion, DINO has gained 81% in a year.
Murphy Oil Corporation (MUR - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov 3.
Murphy Oil topped the Zacks Consensus Estimate by an average of 27.1% in the trailing four quarters, including a 35.9% beat in Q2. Valued at around $7.4 billion, MUR has gained 67.8% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.