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Oil Stocks Q3 Earnings Slated for Nov 1: PXD, DVN, NFX, FANG
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The Q3 earnings season is underway with 291 S&P 500 members or 58.2% of the index’s total membership having already reported their results. The overall financial performance displayed so far this earnings cycle raises optimism. On a year-over-year basis, total earnings for these companies have inched up 2.2% on 1.3% higher revenues, with 73.5% positive earnings surprises and 57.4% outperformance on the top-line front (as per data from the Earnings Trends report dated Oct 28, 2016).
However, the ‘Oils/Energy’ sector continues to remain weak and remains a drag on overall growth. For the 50% sector components on the S&P 500 Index that have reported Q3 results, total earnings are down 58.8% on 15.1% lower revenues.
In spite of the persistent weakness in the sector, an overwhelming 77.8% Oils/Energy companies managed to beat earnings estimates, albeit due to very low estimates. However, the earnings picture for energy stocks look rather uncertain at a moment and we expect to get a clearer picture once more energy companies reveal their results.
Stocks to Watch for Earnings on Nov 1
Let’s see what’s in store for these four such companies when they report their Q3 numbers on Nov 1.
Independent oil and gas exploration and production company, Pioneer Natural Resources Company , is expected to report Q3 earnings, after the closing bell.
Last quarter, the company’s adjusted loss of 22 cents per share was substantially narrower than the Zacks Consensus Estimate of a loss of 34 cents.
Coming to earnings surprise history, the company posted an average positive earnings surprise of 46.49% in the last four quarters.
An earnings beat is certain for Pioneer Natural Resouces this time around. This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
For the quarter to be reported, Pioneer Natural Resouces has an Earnings ESP of 5.88%, while it carries a Zacks Rank #3. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Devon Energy Corp (DVN - Free Report) is expected to report Q3 results, after the market closes.
Last quarter, this independent energy company reported a positive earnings surprise of 127.27%. Notably, Devon Energy outpaced the Zacks Consensus Estimate in the trailing four quarters with an average positive surprise of 44.08%.
However, our proven model does not conclusively show that an earnings beat is uncertain for Devon Energy in the to-be-reported quarter. This is because the company has an Earnings ESP of 0.00% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Oklahoma City, Devon Energy is an independent energy company engaged primarily in the exploration, development and production of oil and natural gas. The company’s oil and gas operations are mainly concentrated in the onshore areas of North America, including the U.S. and Canada.
Newfield Exploration Company is expected to report Q3 results after the market closes.
Last quarter, the company’s adjusted earnings of 32 cents per share beat the Zacks Consensus Estimate of 15 cents. The company had reported adjusted profit of 46 cents per share a year ago. In fact, Newfield Exploration posted an average positive earnings surprise of 761.72% in the last four quarters.
Newfield Exploration is likely to beat earnings expectations in Q3. The company has a Zacks Rank #2 and an Earnings ESP of +4.17%.
Finally, we have upstream operator Diamondback Energy, Inc. (FANG - Free Report) , which is expected to come up with Q3 numbers before the opening bell. A Midland, TX-based oil and gas player, Diamondback boasts of oil and gas reserves in Permian Basin in West Texas.
The company has an excellent track record and managed to beat the Zacks Consensus Estimate in all of the last four quarters.
Our model indicates that Diamondback is likely to beat on earnings this time also. This is because it has Zacks Rank #2 and has an Earnings ESP of +5.88%.
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Oil Stocks Q3 Earnings Slated for Nov 1: PXD, DVN, NFX, FANG
The Q3 earnings season is underway with 291 S&P 500 members or 58.2% of the index’s total membership having already reported their results. The overall financial performance displayed so far this earnings cycle raises optimism. On a year-over-year basis, total earnings for these companies have inched up 2.2% on 1.3% higher revenues, with 73.5% positive earnings surprises and 57.4% outperformance on the top-line front (as per data from the Earnings Trends report dated Oct 28, 2016).
However, the ‘Oils/Energy’ sector continues to remain weak and remains a drag on overall growth. For the 50% sector components on the S&P 500 Index that have reported Q3 results, total earnings are down 58.8% on 15.1% lower revenues.
In spite of the persistent weakness in the sector, an overwhelming 77.8% Oils/Energy companies managed to beat earnings estimates, albeit due to very low estimates. However, the earnings picture for energy stocks look rather uncertain at a moment and we expect to get a clearer picture once more energy companies reveal their results.
Stocks to Watch for Earnings on Nov 1
Let’s see what’s in store for these four such companies when they report their Q3 numbers on Nov 1.
Independent oil and gas exploration and production company, Pioneer Natural Resources Company , is expected to report Q3 earnings, after the closing bell.
Last quarter, the company’s adjusted loss of 22 cents per share was substantially narrower than the Zacks Consensus Estimate of a loss of 34 cents.
PIONEER NAT RES Price and EPS Surprise
PIONEER NAT RES Price and EPS Surprise | PIONEER NAT RES Quote
Coming to earnings surprise history, the company posted an average positive earnings surprise of 46.49% in the last four quarters.
An earnings beat is certain for Pioneer Natural Resouces this time around. This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
For the quarter to be reported, Pioneer Natural Resouces has an Earnings ESP of 5.88%, while it carries a Zacks Rank #3. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Devon Energy Corp (DVN - Free Report) is expected to report Q3 results, after the market closes.
Last quarter, this independent energy company reported a positive earnings surprise of 127.27%. Notably, Devon Energy outpaced the Zacks Consensus Estimate in the trailing four quarters with an average positive surprise of 44.08%.
DEVON ENERGY Price and EPS Surprise
DEVON ENERGY Price and EPS Surprise | DEVON ENERGY Quote
However, our proven model does not conclusively show that an earnings beat is uncertain for Devon Energy in the to-be-reported quarter. This is because the company has an Earnings ESP of 0.00% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Oklahoma City, Devon Energy is an independent energy company engaged primarily in the exploration, development and production of oil and natural gas. The company’s oil and gas operations are mainly concentrated in the onshore areas of North America, including the U.S. and Canada.
Newfield Exploration Company is expected to report Q3 results after the market closes.
Last quarter, the company’s adjusted earnings of 32 cents per share beat the Zacks Consensus Estimate of 15 cents. The company had reported adjusted profit of 46 cents per share a year ago. In fact, Newfield Exploration posted an average positive earnings surprise of 761.72% in the last four quarters.
NEWFIELD EXPL Price and EPS Surprise
NEWFIELD EXPL Price and EPS Surprise | NEWFIELD EXPL Quote
Newfield Exploration is likely to beat earnings expectations in Q3. The company has a Zacks Rank #2 and an Earnings ESP of +4.17%.
Finally, we have upstream operator Diamondback Energy, Inc. (FANG - Free Report) , which is expected to come up with Q3 numbers before the opening bell. A Midland, TX-based oil and gas player, Diamondback boasts of oil and gas reserves in Permian Basin in West Texas.
The company has an excellent track record and managed to beat the Zacks Consensus Estimate in all of the last four quarters.
DIAMONDBACK EGY Price and EPS Surprise
DIAMONDBACK EGY Price and EPS Surprise | DIAMONDBACK EGY Quote
Our model indicates that Diamondback is likely to beat on earnings this time also. This is because it has Zacks Rank #2 and has an Earnings ESP of +5.88%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>