We expect Canadian energy explorer
Talisman Energy Inc.
) to beat expectations when it reports first quarter 2013 results
before the opening bell on Wednesday, May 1.
Why a Likely Positive Surprise?
Our proven model shows that Talisman is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Earnings Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), the difference between the Most Accurate estimate of 5 cents
and the Zacks Consensus Estimate of 4 cents, stands at
Zacks Rank #3 (Hold):
Note that stocks with Zacks Rank of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and 5) should never be considered going into an
The combination of Talisman's Zacks Rank #3 (Hold) and +25.0%
ESP makes us confident of a positive earnings beat this
What's Driving Better-than-Expected Earnings?
The operating environment and growth prospects seem bright for
Talisman, as earnings estimates for this Calgary, Alberta-based
company are on the rise. Over the last 30 days, the Zacks
Consensus Estimate for the first quarter of 2013 has doubled to 4
cents per share.
In particular, Talisman's major positions in the prolific
Marcellus Shale play in western Pennsylvania and the nascent
Montney formation in northeastern British Columbia and
northwestern Alberta provide significant room for continued
Moreover, Talisman's financial flexibility and strong balance
sheet are real assets in this highly uncertain economy. At the
end of 2012, the company had cash balance of approximately $721
million. Additionally, with no near-term debt maturities and $3.7
billion in available borrowing capacity, the company is well
equipped to face this environment.
Other Stocks to Consider
Here are some other energy firms that warrant a look as these
have the right ingredients to report earnings beat this
Exterran Partners L.P.
) has an earnings ESP of +4.35% and a Zacks Rank #1 (Strong
) has an earnings ESP of +28.95% and a Zacks Rank #1 (Strong
Delek US Holdings Inc.
)has an earnings ESP of +0.86% and a Zacks Rank #2 (Buy).
DELEK US HLDGS (DK): Free Stock Analysis
EXTERRAN PTNRS (EXLP): Free Stock Analysis
SEMGROUP CORP-A (SEMG): Free Stock Analysis
TALISMAN ENERGY (TLM): Free Stock Analysis
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