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Will Production Growth Drive Cabot (COG) in Q1 Earnings?
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Cabot Oil & Gas Corporation is set to release first-quarter 2020 results after the closing bell on Thursday, Apr 30. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 13 cents per share on revenues of $386.9 million.
Let’s delve into the factors that might have influenced the natural gas explorer’s performance in the March quarter. But it’s worth taking a look at Cabot’s previous quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream player met the consensus mark on lower costs and slightly higher-than-anticipated production. Cabot reported adjusted earnings per share of 30 cents, in line with the Zacks Consensus Estimate. Meanwhile, the company’s quarterly revenues of $461.4 million missed the Zacks Consensus Estimate of $478 million as natural gas prices declined.
As far as earnings surprises are concerned, Cabot is on a solid footing, having gone past the Zacks Consensus Estimate in three of the last four reports, with the average positive surprise being 6.4%. This is depicted in the graph below:
Cabot Oil & Gas Corporation Price and EPS Surprise
The Zacks Consensus Estimate for first-quarter earnings per share remained same over the last seven days. However, the estimated figure indicates an 82.2% drop from the year-ago reported earnings. The Zacks Consensus Estimate for revenues also suggests a 39.7% decrease from the prior-year reported figure of $641.7 million.
Factors to Consider This Quarter
Cabot is focused on high-impact natural gas-driven drilling. As such, its acreage in the Marcellus shale play is expected to have placed it well for significant output growth in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter total production is pegged at 217 billion cubic feet (Bcf), indicating a 6% increase from 204.8 Bcf a year ago. Investors should know that the company’s total production comprises 100% natural gas.
However, the positive impact of volume growth might have been offset by lower price realizations. The Zacks Consensus Estimate for average natural gas price realization (excluding the impact of its hedging program) for the to-be-reported quarter stands at $1.76 per thousand cubic feet, implying a 43% decrease from $3.09 reported a year earlier.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Cabot is likely to beat estimates in the March quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company stands at -3.63%.
Zacks Rank: Cabot has a Zacks Rank of 3.
Stocks to Consider
While earnings beat looks uncertain for Cabot, here are some firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this season:
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +3.90% and a Zacks Rank #2. The firm is scheduled to release earnings on Apr 30.
Transocean Ltd. (RIG - Free Report) has an Earnings ESP of +0.56% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Apr 29.
Concho Resources Inc. has an Earnings ESP of +3.48% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Apr 30.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Will Production Growth Drive Cabot (COG) in Q1 Earnings?
Cabot Oil & Gas Corporation is set to release first-quarter 2020 results after the closing bell on Thursday, Apr 30. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 13 cents per share on revenues of $386.9 million.
Let’s delve into the factors that might have influenced the natural gas explorer’s performance in the March quarter. But it’s worth taking a look at Cabot’s previous quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream player met the consensus mark on lower costs and slightly higher-than-anticipated production. Cabot reported adjusted earnings per share of 30 cents, in line with the Zacks Consensus Estimate. Meanwhile, the company’s quarterly revenues of $461.4 million missed the Zacks Consensus Estimate of $478 million as natural gas prices declined.
As far as earnings surprises are concerned, Cabot is on a solid footing, having gone past the Zacks Consensus Estimate in three of the last four reports, with the average positive surprise being 6.4%. This is depicted in the graph below:
Cabot Oil & Gas Corporation Price and EPS Surprise
Cabot Oil & Gas Corporation price-eps-surprise | Cabot Oil & Gas Corporation Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings per share remained same over the last seven days. However, the estimated figure indicates an 82.2% drop from the year-ago reported earnings. The Zacks Consensus Estimate for revenues also suggests a 39.7% decrease from the prior-year reported figure of $641.7 million.
Factors to Consider This Quarter
Cabot is focused on high-impact natural gas-driven drilling. As such, its acreage in the Marcellus shale play is expected to have placed it well for significant output growth in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter total production is pegged at 217 billion cubic feet (Bcf), indicating a 6% increase from 204.8 Bcf a year ago. Investors should know that the company’s total production comprises 100% natural gas.
However, the positive impact of volume growth might have been offset by lower price realizations. The Zacks Consensus Estimate for average natural gas price realization (excluding the impact of its hedging program) for the to-be-reported quarter stands at $1.76 per thousand cubic feet, implying a 43% decrease from $3.09 reported a year earlier.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Cabot is likely to beat estimates in the March quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company stands at -3.63%.
Zacks Rank: Cabot has a Zacks Rank of 3.
Stocks to Consider
While earnings beat looks uncertain for Cabot, here are some firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this season:
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +3.90% and a Zacks Rank #2. The firm is scheduled to release earnings on Apr 30.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Transocean Ltd. (RIG - Free Report) has an Earnings ESP of +0.56% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Apr 29.
Concho Resources Inc. has an Earnings ESP of +3.48% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Apr 30.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>