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Is a Beat in Store for EOG Resources (EOG) in Q3 Earnings?

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EOG Resources, Inc. (EOG - Free Report) is set to report third-quarter 2023 earnings on Nov 2, after the closing bell.

In the last reported quarter, the company’s earnings of $2.49 per share beat the Zacks Consensus Estimate of $2.28, thanks to higher oil equivalent production volumes. EOG’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed on two occasions, with the average surprise being 4.8%. This is depicted in the graph below:

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. price-eps-surprise | EOG Resources, Inc. Quote

Estimate Trend

The Zacks Consensus Estimate for third-quarter earnings per share of $2.95 has witnessed six upward revisions and two downward movements over the past 30 days. The estimated figure suggests a significant decline from the year-ago reported number.

The Zacks Consensus Estimate for third-quarter revenues of $5.9 billion indicates a 22.2% fall from the year-ago reported figure.

Earnings Whispers

Our proven model predicts an earnings beat for EOG 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. That is just the case here.  

Earnings ESP: EOG Resources has an Earnings ESP of +1.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.   

Zacks Rank: EOG currently carries a Zacks Rank #3.

Factors to Consider

The pricing scenario of oil and natural gas was impressive in the third quarter of this year. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.

Like oil, natural gas prices in the September quarter were healthier than in the second quarter, aiding the exploration and production activities of EOG. Following higher commodity prices, we expect the total oil equivalent daily production to increase 5.3% year over year in the third quarter, aiding the bottom line.

Other Stocks to Consider

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:

Cenovus Energy Inc. (CVE - Free Report) currently has an Earnings ESP of +6.53% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for CVE’s earnings is pegged at 59 cents per share, suggesting a decline from the prior-year reported figure.

Devon Energy Corp. (DVN - Free Report) has an Earnings ESP of +0.72% and is currently a Zacks #2 Ranked player.

The company is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for DVN’s earnings is pegged at $1.55 per share.

ConocoPhillips (COP - Free Report) has an Earnings ESP of +0.50% and is a Zacks #2 Ranked player at present.

ConocoPhillips is scheduled to release third-quarter results on Nov 2. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.04 per share, suggesting a significant year-over-year decline.

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

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