Quantcast

Is a Beat in Store for Cimarex (XEC) This Earnings Season?


Shutterstock photo

Cimarex Energy Co. XEC is set to release third-quarter 2018 results on Nov 6, after the closing bell.

In the last reported quarter, this upstream energy player witnessed a negative earnings surprise of 3.1%. However, it delivered an average four-quarter positive earnings surprise of 5.5%.

Cimarex Energy Co Price and EPS Surprise

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

Which Way Are the Estimates Treading?

Let's take a look at the estimate revision trend to get a clear picture of what analysts are thinking about the company prior to the earnings release.

The Zacks Consensus Estimate of $1.49 for third-quarter earnings has been revised upward over the last 30 days, with six firms being bullish and five firms adopting a bearish stance. This figure reflects a year-over-year improvement of 36.7%.

Further, the Zacks Consensus Estimate for revenues is pegged at $549.8 million, mirroring an increase of 18.6% from the year-ago quarter number.

Earnings Whispers

Our proven model shows that Cimarex is likely to beat estimates this quarter. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .      

Earnings ESP : Cimarex has an Earnings ESP of +2.20%. This is because the Most Accurate Estimate stands at $1.53 and the Zacks Consensus Estimate is pegged at $1.49. Notably, a favorable ESP is a leading indicator of a likely positive surprise.

Zacks Rank : Cimarex has a Zacks Rank #2.

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

Factors Likely to Influence Q3 Results

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

The Zacks Consensus Estimate for the company's production in the third quarter is pegged at 1,274 million cubic feet of gas equivalent per day (MMcfe/D), indicating a rise from 1,143 MMcfe/D in the year-earlier quarter.  

For average realized natural gas price, the consensus mark is expected to move north 12.7% from the figure registered in the preceding quarter and move south 29.8% from the year-ago quarter number to $1.86 per thousand cubic feet (mcf).

The Zacks Consensus Estimate for average realized oil price is projected to decline 4.9% from the preceding quarter and jump 30.7% from the year-ago quarter to $58 per barrel.

The consensus mark for average realized natural gas liquids price is anticipated to move up 4% and 7.2% from the preceding quarter and year-ago quarter number to $23.18 per barrel, respectively.

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 is likely to decline from the year-ago period.

Other Stocks to Consider

Here are some other top-ranked companies from the energy space, which according to our model have the right combination of elements to post an earnings beat in the third quarter to be reported.

Headquartered in Calgary, Alberta, Enbridge Inc ENB is a leading energy infrastructure company. It has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Calgary, Alberta-based TC PipeLines, L.P. TCP is a master limited partnership (MLP), with interests in eight pipeline systems. The company has an Earnings ESP of +13.29% and a Zacks Rank #1.

Summit Midstream Partners, LP SMLP owns and operates midstream energy infrastructure mainly located in unconventional resource basins. The company has an Earnings ESP of +64.00% and a Zacks Rank #1.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Summit Midstream Partners, LP (SMLP): Free Stock Analysis Report

TC PipeLines, LP (TCP): Free Stock Analysis Report

Enbridge Inc (ENB): Free Stock Analysis Report

Cimarex Energy Co (XEC): Free Stock Analysis Report

To read this article on Zacks.com click here.

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: SMLP , TCP , ENB , XEC



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?