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What's in Store for Centennial Resource's (CDEV) Q2 Earnings?

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Centennial Resource Development, Inc.  is set to report second-quarter 2022 earnings results on Aug 3, after the closing bell.

In the last reported quarter, the upstream energy company’s adjusted earnings of 37 cents per share missed the Zacks Consensus Estimate of 40 cents due to increased lease operating expenses, and exploration and other expenses. The negatives were offset partially by higher oil-equivalent volumes and commodity prices.

In the trailing four quarters, Centennial Resource’s bottom line beat the Zacks Consensus Estimate twice and missed the same twice, the negative average surprise being 6.3%. This is depicted in the graph below:

Centennial Resource Development Price and EPS Surprise

 

Centennial Resource Development Price and EPS Surprise

Centennial Resource Development price-eps-surprise | Centennial Resource Development Quote

Let’s delve into the factors that are anticipated to have influenced the upstream company’s performance in the June-end quarter.

Estimate Trend

The Zacks Consensus Estimate for the company’s second-quarter earnings per share of 41 cents has witnessed two upward revisions and two downward movements in the past 30 days. The estimate suggests a significant increase from the year-ago quarter’s earnings of 2 cents per share.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $394 million indicates a 69.1% improvement from the year-ago reported figure.

Factors to Consider

In the June-end quarter of 2022, oil and natural gas prices were significantly higher than the year-ago quarter. Higher commodity prices are expected to have aided Centennial Resource’s operations in the second quarter. This is because the company produces hydrocarbon from the pure-play Permian Basin, the most prolific oil resource in the United States. Thus, a healthier commodity price scenario was favorable for Centennial Resource’s exploration and production activities in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Centennial Resource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: Centennial Resource’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 41 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Comstock Resources, Inc. (CRK - Free Report) has an Earnings ESP of +5.45% and is currently a Zacks #3 Ranked player.

Comstock Resources is scheduled to release second-quarter results on Aug 1. The Zacks Consensus Estimate for CRK’s quarterly earnings is pegged at 93 cents per share, suggesting a massive increase from the prior-year reported figure.

Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3 at present.

Diamondback is scheduled to release second-quarter earnings on Aug 1. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.66 per unit, suggesting a massive improvement from the prior-year reported figure.

Occidental Petroleum Corporation (OXY - Free Report) currently has an Earnings ESP of +1.78% and a Zacks Rank #2.

Occidental is scheduled to release second-quarter earnings on Aug 2. The Zacks Consensus Estimate for OXY’s earnings is pegged at $2.93 per share, suggesting a significant increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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