| Cimarex Energy (XEC): What Awaits This Earnings Season? | |
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Independent oil & gas exploration and production firm, Cimarex Energy Company XEC is expected to release third-quarter 2015 results on Tuesday, Nov 3.
Last quarter, the company delivered a positive average surprise of 236.36% despite the challenges that a steep drop in oil price tagged along. In fact, the company has outpaced/met the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 58.56%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Oil price during the Jul–Sep 2015 quarter hovered mostly between $45 and $55 per barrel. This was considerably below the prior-year quarter level, when crude was trading around the $100 per barrel mark.
With the weakness in oil prices, the top energy companies have cut spending (particularly on the costly drilling projects) to make up for the lower profit margins. This, in turn, meant less work for the beleaguered drillers as exploration for new oil and gas projects almost come to a standstill in the quarter under discussion.
However, to some extent, Cimarex Energy’s successful cost reduction initiatives are likely to lessen the negative impact on the third-quarter results.
Overall activities of Cimarex Energy were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the third quarter widened to a loss of 9 cents from a loss of 2 cents per share over the last 60 days. Earnings Whispers
Our proven model does not conclusively show that Cimarex Energy is likely to beat results this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: Cimarex Energy has an Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 9 cents.
Zacks Rank: Cimarex carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, we also need a positive ESP to be confident of a likely beat.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the announcement of the results, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks from the energy space which, according to our model, have the right combination of elements to post an earnings beat this quarter are:
Exterran Partners, L.P. EXLP with Earnings ESP of +19.23% and a Zacks Rank #2 (Buy). The company is slated to release earnings results on Nov 3.
Callon Petroleum Co. CPE has Earnings ESP of +66.67% and a Zacks Rank #2. It will be reporting results on Nov 4.
PennTex Midstream Partners, LP PTXP has Earnings ESP of +114.29% and a Zacks Rank #3. The company is scheduled to release results on Nov 6. 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 >> 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 CIMAREX ENERGY (XEC): Free Stock Analysis Report EXTERRAN PTNRS (EXLP): Free Stock Analysis Report CALLON PETE-DEL (CPE): Free Stock Analysis Report PENNTEX MIDSTRM (PTXP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Cimarex Energy Co.
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CODE : XEC |
ISIN : US1717981013 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Cimarex Energy est une société de production minière basée aux Etats-Unis D'Amerique. Cimarex Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 8,3 milliards US$ (7,2 milliards €). La valeur de son action a atteint son plus haut niveau récent le 23 mai 2018 à 99,89 US$, et son plus bas niveau récent le 30 septembre 2021 à 87,20 US$. Cimarex Energy possède 95 438 121 actions en circulation. |