Cimarex (XEC) Gears Up for Q1 Earnings: What's in Store?

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Cimarex Energy Co. XEC is set to release first-quarter 2018 results on May 8, after the closing bell.

Last quarter, the upstream energy player posted a positive earnings surprise of 5.8%. Moreover, Cimarex has an average positive earnings surprise of 13.3% for the last four quarters.

Which Way Are the Estimates Trending?

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 $1.70 for first-quarter earnings has been revised upward over the last 30 days, with 12 firms being bullish and seven firms adopting a bearish stance. The consensus estimate reflects a year-over-year improvement of 61.9%.

Further, analysts polled by Zacks expect revenues of $562.9 million, showing an increase of 25.9% from the year-ago quarter.

Cimarex Energy Co Price and EPS Surprise

Cimarex Energy Co Price and EPS Surprise | Cimarex Energy Co Quote

Factors Likely to Affect Results

Cimarex is a leading upstream energy player with prime focus on the prospective Anadarko and Permian Basins.

Per the Zacks Consensus Estimate, the company's production for the first quarter is pegged at 1,216 million cubic feet of gas equivalent per day (MMcfe/D), higher than 1,204 MMcfe/D in the preceding quarter and 1,063.1 MMcfe/D in the year-earlier quarter.  

Analysts polled by Zacks expect average realized natural gas price to decline 1.6% and 15.6% from the preceding quarter and the year-ago quarter to $2.54 per thousand cubic feet (mcf).

It is to be noted that a significant portion of the company's production comprise natural gas. Although the gas equivalent production is expected to increase, the price realization for the commodity will likely decline.

Earnings Whispers

Our proven model does not show a beat for Cimarex this earnings season. 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.

Zacks ESP : Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -0.39%. You can uncover the best stocks to buy or sell before they're reported with our  Earnings ESP Filter .      

Zacks Rank : Cimarex carries a Zacks Rank #3.

Conversely, Sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.

Stocks to Consider

Here are some firms that you may want to consider on the basis of our model. These have the right combination of elements to beat earnings this quarter.

Solaris Oilfield Infrastructure, Inc. SOI has an Earnings ESP of +6.28% and a Zacks Rank #1. You can see  the complete list of today's Zacks #1 Rank stocks here .

Abraxas Petroleum Corp. AXAS has an Earnings ESP of +14.29% and a Zacks Rank #3.

Oasis Petroleum Inc. OAS has an Earnings ESP of +7.06% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: AXAS , OAS , XEC , SOI

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