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Why Is Cheniere Energy (LNG) Up 0.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Cheniere Energy (LNG - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cheniere Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Cheniere Q1 Earnings Well Above Estimates
Cheniere Energy reported an adjusted profit of $7.35 per share for the first quarter, surpassing the Zacks Consensus Estimate of earnings of $3.34. This could be attributed to higher-than-expected sales during the reported quarter backed by rise in energy prices. Moreover, the bottom line bettered the year-ago quarter’s earnings of $1.54.
Revenues from Cheniere Energy came in at $7,340 million, beating the Zacks Consensus Estimate of $6,028 million, up by around 155.7% from the year-ago figure of $2,999 million. This could be attributed to the year-over-year increase in cargoes shipped and an increase in volumes, as well as prices.
Total Quarterly revenues rose 142.2% to $7.48 billion from $3.09 billion a year ago.
Cheniere Energy posted adjusted EBITDA of $3.15 billion, with distributable cash flow (DCF) of around $2.5 billion. During the quarter, LNG shipped 160 cargoes compared with 133 in the year-earlier period. Total volumes of LNG exported were 585 trillion British thermal units (TBtu) compared with 476 TBtu in the prior year.
Costs & Balance Sheet
Overall costs and expenses rose almost 300% from the level recorded in the corresponding quarter of the last year to $8,097 million. This rise is mainly attributed to the higher cost of sales expenses that climbed ny a massive 429.3% from the year-ago quarter’s number to $7.34 billion.
As of Mar 31, 2022, Cheniere Energy had approximately $2,487 million of cash and cash equivalents. Its net long-term debt was $28,907 million.
Shareholders Capital-Return Initiative
Houston, TX-based LNG repurchased a total of 0.24 million shares for about $25 million and paid a quarterly dividend of 33 cents per common share on February 28, 2022.
Guidance
For 2022, Cheniere Energy mentioned that it is raising its financial guidance for the year due to the sustained strength in the global LNG market and an increase in expected LNG production.
It revised the adjusted EBITDA guidance range to $8.2-$8.7 billion from the existing $7.0-$7.5 billion.
LNG revised its DCF for 2022 to the $5.5 billion-$6 billion range from the previous range of $4.3-$4.8 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -16.75% due to these changes.
VGM Scores
Currently, Cheniere Energy has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Cheniere Energy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Cheniere Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Antero Resources (AR - Free Report) , has gained 19.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Antero Resources reported revenues of $786.84 million in the last reported quarter, representing a year-over-year change of -34.7%. EPS of $1.15 for the same period compares with $0.62 a year ago.
For the current quarter, Antero Resources is expected to post earnings of $1.58 per share, indicating a change of +1028.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Antero Resources. Also, the stock has a VGM Score of A.
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Why Is Cheniere Energy (LNG) Up 0.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Cheniere Energy (LNG - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cheniere Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Cheniere Q1 Earnings Well Above Estimates
Cheniere Energy reported an adjusted profit of $7.35 per share for the first quarter, surpassing the Zacks Consensus Estimate of earnings of $3.34. This could be attributed to higher-than-expected sales during the reported quarter backed by rise in energy prices. Moreover, the bottom line bettered the year-ago quarter’s earnings of $1.54.
Revenues from Cheniere Energy came in at $7,340 million, beating the Zacks Consensus Estimate of $6,028 million, up by around 155.7% from the year-ago figure of $2,999 million. This could be attributed to the year-over-year increase in cargoes shipped and an increase in volumes, as well as prices.
Total Quarterly revenues rose 142.2% to $7.48 billion from $3.09 billion a year ago.
Cheniere Energy posted adjusted EBITDA of $3.15 billion, with distributable cash flow (DCF) of around $2.5 billion. During the quarter, LNG shipped 160 cargoes compared with 133 in the year-earlier period. Total volumes of LNG exported were 585 trillion British thermal units (TBtu) compared with 476 TBtu in the prior year.
Costs & Balance Sheet
Overall costs and expenses rose almost 300% from the level recorded in the corresponding quarter of the last year to $8,097 million. This rise is mainly attributed to the higher cost of sales expenses that climbed ny a massive 429.3% from the year-ago quarter’s number to $7.34 billion.
As of Mar 31, 2022, Cheniere Energy had approximately $2,487 million of cash and cash equivalents. Its net long-term debt was $28,907 million.
Shareholders Capital-Return Initiative
Houston, TX-based LNG repurchased a total of 0.24 million shares for about $25 million and paid a quarterly dividend of 33 cents per common share on February 28, 2022.
Guidance
For 2022, Cheniere Energy mentioned that it is raising its financial guidance for the year due to the sustained strength in the global LNG market and an increase in expected LNG production.
It revised the adjusted EBITDA guidance range to $8.2-$8.7 billion from the existing $7.0-$7.5 billion.
LNG revised its DCF for 2022 to the $5.5 billion-$6 billion range from the previous range of $4.3-$4.8 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -16.75% due to these changes.
VGM Scores
Currently, Cheniere Energy has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Cheniere Energy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Cheniere Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Antero Resources (AR - Free Report) , has gained 19.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Antero Resources reported revenues of $786.84 million in the last reported quarter, representing a year-over-year change of -34.7%. EPS of $1.15 for the same period compares with $0.62 a year ago.
For the current quarter, Antero Resources is expected to post earnings of $1.58 per share, indicating a change of +1028.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Antero Resources. Also, the stock has a VGM Score of A.