The Q2 earnings season has long crossed the half way mark, with results from 420 S&P 500 members that account for 86.7% of the index’s total market capitalization. It is to be noted that as many as 35 S&P 500 members are set to release their quarterly results this week.
The Picture So Far
As per the latest Earnings Preview, total earnings for these companies rose 11.6% from the same period last year on 5.6% higher revenues, with 74.3% beating earnings and 68.3% trumping revenue estimates.
Energy Outshines Other Sectors
We have divided the S&P 500 Index into 16 Zacks Sectors. As per our report, among all the sectors, Oil/Energy has witnessed the highest year-over-year earnings growth. So far, 93.5% of Oil/Energy companies have reported with a combined picture of 313.3% earnings growth. The other sectors significantly lag Oil/Energy.
Healthy Oil & Gas Performance in Q2
The oil and gas pricing scenario in second-quarter 2017 was substantially better than the year-ago period.
Hopes of OPEC’s production cut deal extension was the prime factor driving the year-over-year hike in prices during April and almost the entire of May. Market anticipations proved somewhat correct as OPEC and 11 non-OPEC players, including Russia, decided to extend the production cut deal until Mar 2018 in the Vienna meeting.
Natural gas also made a modest recovery in Q2 after the commodity hit its lowest annual average price in 2016 in almost 20 years.
Energy Explorers & Downstream Players to Watch for Earnings
Let’s see what’s in store for five such companies expected to come up with second-quarter numbers on Aug 8. Let’s take a look at how things are shaping up at their end.
Upstream player Cimarex Energy Co. (XEC - Free Report) is scheduled to report results after the closing bell. In the first quarter of 2017, this Denver, Colorado-based company delivered a positive earnings surprise of 23.53%.
Our proven model does not conclusively show an earnings beat for Cimarex this quarter. That is because the stock has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat on earnings.
Based in Houston, TX Cheniere Energy Inc. (LNG - Free Report) is primarily engaged in businesses related to liquefied natural gas (or LNG) through its two business segments: LNG terminal; and LNG and natural gas marketing.
The company is scheduled to report results before the opening bell. Last quarter, the company reported an earnings surprise of 162.16%.
An earnings beat is certain for Cheniere Energy this time as it has an Earnings ESP of +2,200.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
An independent energy exploration company, Continental Resources Inc. (CLR - Free Report) , is expected to report results after the closing bell.
Last quarter, this Oklahoma City, OK-based upstream player saw an earnings miss of 33.33%.
An earnings beat looks unlikely for Continental Resources. For the quarter to be reported, the company has an Earnings ESP of 0.00%, while it carries a Zacks Rank #3.
Energen Corporation (EGN - Free Report) , a leading exploration player with extensive operations in the Permian Basin, will likely report results before the opening bell.
In the prior quarter, the upstream company posted an earnings miss of 8.33%. An earnings beat is uncertain for Energen this time around as well as it has an Earnings ESP of 0.00% and a Zacks Rank #3.
Headquartered in San Antonio, TX,refining player Andeavor (ANDV - Free Report) is expected to report earnings results after the closing bell.
Last quarter, the company recorded an earnings beat of 44.44%. An earnings beat looks unlikely for Andeavor. For the quarter to be reported, the company has an Earnings ESP of 0.00%, while it carries a Zacks Rank #3.
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