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EQT Gears Up to Report Q3 Earnings: Here's What to Expect

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EQT Corporation (EQT - Free Report) is set to report third-quarter 2024 earnings on Oct. 29, after the closing bell.

Let us delve into the factors that are anticipated to have affected this natural gas producer’s performance. However, before that, it would be worth reviewing EQT’s performance in the previous quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Highlights of Q2 Earnings & Surprise History

In the last reported quarter, the company’s loss of 8 cents per share was narrower than the Zacks Consensus Estimate of a loss of 20 cents, backed by higher sales volumes and lower total operating expenses.

EQT’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the same once, delivering an average surprise of 108.51%. 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 earnings per share of 13 cents has witnessed one downward revision and no upward movement over the past seven days. The estimated figure suggests a decline of 56.67% from the year-ago reported number.

The Zacks Consensus Estimate for revenues of $1.41 billion indicates an 18.3% improvement from the year-ago reported figure.

Factors to Consider

EQT's focus on increasing production levels could have translated into higher volumes, which might have boosted both revenues and earnings. On the production front, we expect the company, with a strong footprint in the prolific Marcellus shale play, to produce almost 6% higher natural gas equivalent volumes than the prior-year level.

However, based on data from the U.S. Energy Information Administration (EIA), spot prices for Henry Hub natural gas averaged $2.07, $1.98, and $2.28 per million Btu in July, August and September, respectively, compared with $2.55, $2.58 and $2.64 in the corresponding periods of 2023. This year-over-year price drop suggests weaker realized prices, which must have resulted in lower revenues and squeezed margins for EQT.

Additionally, U.S. liquified natural gas exports faced bottlenecks and downtime during the third quarter, potentially leading to a softening of natural gas prices in the domestic market and lower sales opportunities for producers like EQT. These factors are likely to have adversely impacted the company's earnings in the third quarter.

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 -62.37%. 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 #4.

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Murphy USA Inc. (MUSA - Free Report) currently has an Earnings ESP of +0.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

MUSA is scheduled to release third-quarter earnings on Oct. 30. The Zacks Consensus Estimate for earnings is pegged at $6.64 per share, suggesting an almost 14% decrease from the prior-year reported figure.

Sunoco LP (SUN - Free Report) presently has an Earnings ESP of +13.44% and a Zacks Rank #2.

Sunoco is scheduled to release third-quarter earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.53 per share, suggesting a 48% decrease from the prior-year reported figure.

Cheniere Energy, Inc. (LNG - Free Report) presently has an Earnings ESP of +7.93% and a Zacks Rank #3.

Cheniere Energy is scheduled to release third-quarter earnings on Oct. 31. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, suggesting a 21% decline from the prior-year reported figure.


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