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Factors Likely to Determine the Fate of EQT in Q3 Earnings

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EQT Corporation (EQT - Free Report) is set to report third-quarter 2023 earnings on Oct 25, after the closing bell.

In the last reported quarter, the company’s loss of 17 cents per share was narrower than the Zacks Consensus Estimate of loss of 27 cents, thanks to lower operating costs. EQT’s bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 17.1%. This is depicted in the graph below:

EQT Corporation Price and EPS Surprise

EQT Corporation Price and EPS Surprise

EQT Corporation price-eps-surprise | EQT Corporation Quote

Estimate Trend

The Zacks Consensus Estimate for third-quarter loss per share of 7 cents has witnessed three upward and four downward revisions over the past 30 days. The estimated figure suggests a significant decline from the year-ago reported number.

The Zacks Consensus Estimate for third-quarter revenues of $1.2 billion indicates a 27% decline from the year-ago reported figure.

Factors to Consider

The pricing scenario of oil and natural gas was impressive in the third quarter of this year. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.

Like oil, natural gas prices in the September quarter were healthier than in the second quarter, aiding the exploration and production activities of EQT. Nevertheless, we anticipate a slight increase of 0.1% in gas equivalent sales volumes, which will have a limited impact on the overall bottom line. The slowdown of production growth for most of the upstream energy players is owing to pressures from investors to return capital rather than investing capital primarily in production.

Earnings Whispers

Our proven model does not indicate an earnings beat for EQT 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: EQT’s Earnings ESP is -78.21%. 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.

Stocks to Consider

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

Viper Energy Partners LP (VNOM - Free Report) currently has an Earnings ESP of +28.07% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting a decline from the year-ago figure.

Antero Resources Corporation (AR - Free Report) has an Earnings ESP of +91.67% and is currently a Zacks #3 Ranked player.

The company is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for AR’s loss is pegged at 6 cents per share.

Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +4.05% and is a Zacks #2 Ranked player at present.

Valero Energy is scheduled to release third-quarter results on Oct 26. The Zacks Consensus Estimate for VLO’s earnings is pegged at $7.21 per share, suggesting a marginal year-over-year improvement.

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


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