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Pioneer Natural (PXD) to Post Q4 Earnings: A Beat in Store?

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Pioneer Natural Resources Company PXD is expected to trump earnings estimates when it releases fourth-quarter 2019 results on Feb 19, after the closing bell.

In the last reported quarter, the company came up with earnings of $1.99 per share that missed the Zacks Consensus Estimate of $2.02. Moreover, quarterly earnings decreased from $2.07 per share in the prior-year quarter. The weak earnings were attributed to lower average realized prices on an oil equivalent basis.

Pioneer Natural delivered an average positive earnings surprise of 0.8% in the last four quarters, as shown in the chart below.

Pioneer Natural Resources Company Price and EPS Surprise

Let’s see how things have shaped up prior to the announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings of $2.12 per share has seen six upward revisions and three downward movements in the past 30 days. The figure suggests year-over-year growth of 79.7%.

Further, the Zacks Consensus Estimate for revenues is pegged at $2.5 billion for the quarter, indicating a decline of 7.3% from the year-ago reported figure.

What the Zacks Model Says

Our proven model predicts an earnings beat for Pioneer Natural 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +1.90%. This is because the Most Accurate Estimate is pegged at $2.16, higher than the Zacks Consensus Estimate of $2.12 per share.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Factors to Consider

Since crude accounts for the majority of the company’s production volumes (61.4% in third quarter), higher year-over-year production is likely to have favored fourth-quarter earnings. Moreover, rise in crude price realizations is expected to have aided its profits.

The Zacks Consensus Estimate for average crude oil production volumes of the company is pegged at 217 thousand barrels per day (MBbls/d), suggesting an increase from the year-ago period’s 199 MBbls/d. Moreover, the consensus estimate for average price realizations of the commodity is $56 per barrel, indicating an increase from the year-ago period’s $49.80.

Other Stocks That Warrant a Look

Investors can also consider the following players from the energy space that too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

EOG Resources, Inc. EOG has an Earnings ESP of +0.18% and a Zacks Rank #3. The company is set to release quarterly earnings on Feb 27.

EQT Corporation (EQT - Free Report) has an Earnings ESP of +11.93% and a Zacks Rank #3. The company is set to release quarterly earnings on Feb 27.

Matador Resources Company MTDR has an Earnings ESP of +0.11% and a Zacks Rank #3. The company is set to release quarterly earnings on Feb 25.

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