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EQT Corp (EQT) Gears Up for Q3 Earnings: Is a Beat in Store?

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EQT Corporation EQT is expected to report third-quarter 2018 results on Oct 25.

The Pittsburgh, PA-based company’s earnings surprise history is impressive. It has not missed the Zacks Consensus Estimate in any of the prior four quarters, recording an average positive earnings surprise of 151.1%. For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 34 cents, 183.3% higher than the year-ago period.

EQT Corporation Price and EPS Surprise

EQT Corporation Price and EPS Surprise | EQT Corporation Quote

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

Why a Likely Positive Surprise?

Our proven model shows that EQT Corp is likely to beat earnings estimates because it has the right combination of two key ingredients.    

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +13.70%. This is a very meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, EQT Corp carries a Zacks Rank #3 (Hold), which when combined with +13.70% ESP makes us confident about an earnings beat.

Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.  

What’s Driving the Better-Than-Expected Performance?

The Zacks Consensus Estimate for third-quarter average daily sales volume is pegged at 4,083 million cubic feet equivalent per day (MMcfe/d), higher than 3,984 MMcfe/d in the last reported quarter and 2,229 MMcfe/d in the year-ago quarter. The year-over-year increase can be attributed to the Rice Energy acquisition. Additionally, the Zacks Consensus Estimate for the Production segment’s earnings is pegged at $102 million, reflecting an increase from $12.1 million in the year-ago quarter. 

Moreover, the Zacks Consensus Estimate for revenues from sales of natural gas, oil and NGLs for the third quarter is $963 million, up from $553 million in the year-ago quarter. Revenues from pipeline and marketing services are projected at $352 million, up from the year-ago period’s $72 million.

Other Stocks to Consider

Here are some other companies from the oil and gas energy sector, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:

Plano, TX-based Denbury Resources Inc. has a Zacks Rank #1 and an Earnings ESP of +13.04%. The company will report third-quarter earnings on Nov 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Woodlands, TX-based Anadarko Petroleum Corporation APC holds a Zacks Rank #2 and has an Earnings ESP of +1.90%. The company is scheduled to report third-quarter earnings on Oct 30.

Oklahoma City, OK-based Chaparral Energy, Inc. CHAP carries a Zacks Rank #2 and has an Earnings ESP of +71.43%. The company is anticipated to report quarterly results on Nov 13.

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