Back to top

Image: Shutterstock

What's in the Cards for SM Energy This Earnings Season?

Read MoreHide Full Article

SM Energy Company (SM - Free Report) is set to report third-quarter 2024 results on Oct. 31, after the closing bell.

In the last reported quarter, the leading upstream energy player’s adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate of $1.57 due to increased oil equivalent production volumes and high average realized price.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 11.92%. This is depicted in the graph below:

SM Energy Company Price and EPS Surprise

SM Energy Company Price and EPS Surprise

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

SM’s Estimate Trend

The Zacks Consensus Estimate for third-quarter earnings per share of $1.52 has witnessed three downward movements and one upward movement in the past 30 days. The consensus estimate implies a decline of 12.1% from the year-ago reported number.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $651.1 million indicates almost a 2% improvement from the year-ago reported figure.

Factors to Consider for SM

According to the U.S. Energy Information Administration, the average spot prices for West Texas Intermediate crude at Cushing, OK, were $81.80 per barrel in July, $76.68 per barrel in August and $70.24 per barrel in September. This indicates that the crude pricing environment in the third quarter was highly favorable for exploration and production activities.

Favorable commodity prices are likely to have aided the upstream energy major's exploration and production activities, which are expected to have increased oil and gas equivalent volumes. The Zacks Consensus Estimate for SM’s total production is pegged at 15.17 MMBoe, suggesting an improvement from 14.1 MMBoe in the prior-year reported quarter.

Earnings Whispers

Our proven model doesn’t predict an earnings beat for SM Energy 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 not the case here, as you will see below.

Earnings ESP: SM has an Earnings ESP of -6.29%. 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 #4 (Sell).

Stocks to Consider

Here are some stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Cheniere Energy, Inc. (LNG - Free Report) has an Earnings ESP of +12.21% and a Zacks Rank #3.

Cheniere Energy is scheduled to release third-quarter earnings on Oct. 31. The Zacks Consensus Estimate for LNG’s earnings is pegged at $1.87 per share, suggesting a 21.1% decrease from the prior-year reported figure.

Exxon Mobil Corporation (XOM - Free Report) has an Earnings ESP of +0.02% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

ExxonMobil is scheduled to release third-quarter earnings on Nov. 1. The Zacks Consensus Estimate for earnings is pegged at $1.95 per share, suggesting a decline of 14.1% from the prior-year reported figure.

Sunoco LP (SUN - Free Report) has an Earnings ESP of +13.44% and a Zacks Rank #2.

Sunoco is scheduled to release third-quarter earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.53 per share, suggesting a 48% decrease from the prior-year reported figure.

Published in