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Pioneer Natural (PXD) Q2 Earnings: What's in the Cards?

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Pioneer Natural Resources Company (PXD - Free Report) is expected to report second-quarter 2018 results on Aug 7, after the closing bell.
 

In the last reported quarter, the company delivered a positive earnings surprise of 9.9%. We note that Pioneer Natural beat the Zacks Consensus Estimate in the trailing four quarters with an average positive earnings surprise of 55.3%.

Let’s see how things are shaping up for this announcement.

Which Way Are the Estimates Treading?

Let’s take a look at the estimate revision trend to get a clear picture of analyst opinion on the stock before the earnings release.

The Zacks Consensus Estimate of $1.61 for second-quarter earnings has been revised downward over the last 30 days, with seven firms being bullish and nine firms adopting a bearish stance. The figure reflects year-over-year improvement of 666.7%.

Further, the Zacks Consensus Estimate for revenues is pegged at $2.27 billion, showing an increase of 39.1% from the year-ago quarter's tally.

Earnings Whisper

Our proven model does not show that Pioneer Natural is likely to beat estimates this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: Earnings ESP for the company is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.61. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Pioneer Natural carries a Zacks Rank #3.

Please note that we caution investors against stocks with a Zacks Rank #4 or5 (Sell Rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

What is Driving the Better-Than-Expected Earnings?

Based in Irving, TX, Pioneer Natural is an independent oil and gas exploration as well as production company.

The consensus estimate for total production is pegged at 320 thousand barrels of oil equivalent per day (MBOE/d), up 2.6% sequentially and 23.6% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for average sale price of natural gas is pegged at $2.33 per thousand cubic feet (Mcf), showing a fall from the last reported quarter’s $2.59 per Mcf and from the year-ago quarter’s tally of $2.62 per Mcf.

The Zacks Consensus Estimate for average sales price of natural gas liquids in the second quarter is pegged at $27.20 per barrel, showing a fall from $27.74 per barrel in the last reported quarter but indicating an improvement from $16.91 per barrel in the year-ago quarter.

The Zacks Consensus Estimate for average crude oil sales price is pegged at $60 per barrel, reflecting a decline from $62 per barrel in first-quarter 2018but an increase from the year-ago quarter’s price of $45.00.

We expect lowernatural gasprices to hurt revenues. However, higher production and increased focus on Spraberry/Wolfcamp plays is expected to boost production.

Q2 Price Performance

During the quarter, the company’s shares gained 10.2% compared with the industry’s 12.5% rally.



 

Stocks to Consider

Here are some companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Cheniere Energy, Inc (LNG - Free Report) , based in Houston, is engaged in businesses related to liquefied natural gas. The company has an Earnings ESP of +5.25% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Crude oil and refined products logistics and marketing assets are owned, operated, purchased and constructed by Delek Logistics Partners L.P. (DKL - Free Report) . The partnership has an Earnings ESP of +0.63% and a Zacks Rank #2.

Occidental Petroleum Corporation (OXY - Free Report) is an international oil and gas exploration and production company. The company has an Earnings ESP of +1.75% and carries a Zacks Rank #2.

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