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Canadian Natural's Q3 Earnings Preview: Things to Consider
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Canadian Natural Resources Limited (CNQ - Free Report) is set to release third-quarter results on Oct 31. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 67 cents per share on revenues of $6.4 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s delve into the factors that might have influenced this independent energy company’s performance in the September quarter. But it’s worth taking a look at CNQ’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Calgary, Alberta, Canada-based upstream operator beat the consensus mark due to strong production. Canadian Natural reported adjusted earnings per share of 64 cents, beating the Zacks Consensus Estimate of 62 cents. Revenues of $6.6 billion also beat the consensus mark by 6.8%.
CNQ topped the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. The company has a trailing four-quarter earnings surprise of 7.2%, on average. This is depicted in the graph below:
Canadian Natural Resources Limited Price and EPS Surprise
The Zacks Consensus Estimate for the first-quarter bottom line has been revised 1.5% upward in the past seven days. The estimated figure indicates a 30.9% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 13.3% decrease from the year-ago period.
Factors to Consider
Robust oil prices are likely to have significantly benefited CNQ’s third-quarter revenues and cash flows. In particular, our estimate for North America Light Crude Oil & NGL price is pegged at C$71.28 per barrel, indicating a 3.9% improvement from C$68.59 reported in the year-ago quarter.
The company is also expected to have reaped the reward of higher production during the quarter. According to our model, Canadian Natural is likely to have churned out an output of 1,402,141 barrels of oil equivalent per day, up about 1% from a year ago. This momentum could be attributed to CNQ’s broad portfolio of low-risk exploration and development projects with strong international exposure.
Finally, the recent startup of the Trans Mountain pipeline expansion is likely to have left a positive impact on Canadian Natural. This project enhances the company’s ability to transport crude oil efficiently, reducing bottlenecks and transportation costs. Improved pipeline infrastructure is expected to have supported higher export volumes, better pricing and increased profitability, contributing to CNQ’s third-quarter financial outlook.
However, the increase in Canadian Natural’s Transportation, Blending and Feedstock costs might have dented its to-be-reported bottom line. As per our model, the metric is expected to show 7.6% growth over the third quarter of 2023 to C$2.5 billion.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Canadian Natural is likely to beat estimates in the third quarter of 2024. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Canadian Natural has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 67 cents per share each.
Zacks Rank: CNQ currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Canadian Natural, here are some firms from the energy space that you may want to consider on the basis of our model:
Exxon Mobil Corporation (XOM - Free Report) has an Earnings ESP of +0.02% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 1.
ExxonMobil beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 1.8%, on average. Valued at around $475.9 billion, XOM has gained 10.7% in a year.
Cheniere Energy (LNG - Free Report) has an Earnings ESP of +7.93% and a Zacks Rank #3. The firm is scheduled to release earnings on Oct. 31.
Cheniere Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 55.9%, on average. Valued at around $41.3 billion, LNG has increased 8.8% in a year.
Murphy USA (MUSA - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3. The firm is scheduled to release earnings on Oct. 30.
Murphy USA beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 3.5%, on average. Valued at around $9.7 billion, MUSA has surged 32.8% in a year.
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Canadian Natural's Q3 Earnings Preview: Things to Consider
Canadian Natural Resources Limited (CNQ - Free Report) is set to release third-quarter results on Oct 31. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 67 cents per share on revenues of $6.4 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s delve into the factors that might have influenced this independent energy company’s performance in the September quarter. But it’s worth taking a look at CNQ’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Calgary, Alberta, Canada-based upstream operator beat the consensus mark due to strong production. Canadian Natural reported adjusted earnings per share of 64 cents, beating the Zacks Consensus Estimate of 62 cents. Revenues of $6.6 billion also beat the consensus mark by 6.8%.
CNQ topped the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. The company has a trailing four-quarter earnings surprise of 7.2%, on average. This is depicted in the graph below:
Canadian Natural Resources Limited Price and EPS Surprise
Canadian Natural Resources Limited price-eps-surprise | Canadian Natural Resources Limited Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has been revised 1.5% upward in the past seven days. The estimated figure indicates a 30.9% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 13.3% decrease from the year-ago period.
Factors to Consider
Robust oil prices are likely to have significantly benefited CNQ’s third-quarter revenues and cash flows. In particular, our estimate for North America Light Crude Oil & NGL price is pegged at C$71.28 per barrel, indicating a 3.9% improvement from C$68.59 reported in the year-ago quarter.
The company is also expected to have reaped the reward of higher production during the quarter. According to our model, Canadian Natural is likely to have churned out an output of 1,402,141 barrels of oil equivalent per day, up about 1% from a year ago. This momentum could be attributed to CNQ’s broad portfolio of low-risk exploration and development projects with strong international exposure.
Finally, the recent startup of the Trans Mountain pipeline expansion is likely to have left a positive impact on Canadian Natural. This project enhances the company’s ability to transport crude oil efficiently, reducing bottlenecks and transportation costs. Improved pipeline infrastructure is expected to have supported higher export volumes, better pricing and increased profitability, contributing to CNQ’s third-quarter financial outlook.
However, the increase in Canadian Natural’s Transportation, Blending and Feedstock costs might have dented its to-be-reported bottom line. As per our model, the metric is expected to show 7.6% growth over the third quarter of 2023 to C$2.5 billion.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Canadian Natural is likely to beat estimates in the third quarter of 2024. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Canadian Natural has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 67 cents per share each.
Zacks Rank: CNQ currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Canadian Natural, here are some firms from the energy space that you may want to consider on the basis of our model:
Exxon Mobil Corporation (XOM - Free Report) has an Earnings ESP of +0.02% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 1.8%, on average. Valued at around $475.9 billion, XOM has gained 10.7% in a year.
Cheniere Energy (LNG - Free Report) has an Earnings ESP of +7.93% and a Zacks Rank #3. The firm is scheduled to release earnings on Oct. 31.
Cheniere Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 55.9%, on average. Valued at around $41.3 billion, LNG has increased 8.8% in a year.
Murphy USA (MUSA - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3. The firm is scheduled to release earnings on Oct. 30.
Murphy USA beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 3.5%, on average. Valued at around $9.7 billion, MUSA has surged 32.8% in a year.