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Can Cheniere Energy Pull Off a Strong Show in Q3 Earnings?
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Cheniere Energy, Inc. (LNG - Free Report) is set to release third-quarter results on Oct. 31. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.87 per share on revenues of $3.7 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s delve into the factors that might have influenced the liquefied natural gas (“LNG”) exporter’s performance in the September quarter. But it’s worth taking a look at Cheniere Energy’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based transporter of super-chilled fuel outperformed the consensus mark on lower costs and expenses. Cheniere Energy had reported adjusted earnings per share of $3.84, which beat the Zacks Consensus Estimate of $1.71. However, the company’s quarterly revenues of $3.3 billion missed the Zacks Consensus Estimate by 4.3% due to weaker-than-expected LNG sales.
LNG beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two, resulting in an earnings surprise of 55.9%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has been revised 3.8% downward in the past seven days. The estimated figure indicates a 21.1% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests an 11.7% decrease from the year-ago period.
Factors to Consider
Cheniere Energy plays a pivotal role in the LNG market, demonstrated by its efficient terminals and robust demand. The company's terminals have consistently exceeded production capacity, showcasing its efficiency and indicating strong demand for Cheniere's natural gas. This underscores Cheniere's significance as a key player in meeting global LNG demand.
LNG shipments for export from the United States have been robust for months on the back of environmental reasons, high prices of the super-chilled fuel elsewhere and the Russia-Ukraine conflict. This augurs well for Cheniere Energy — the dominant U.S. LNG exporter — in the to-be-reported quarter. In the second quarter of 2024, the total volume of LNG exported by Cheniere Energy came in at 553 trillion British thermal units (TBtu), up from 536 TBtu in the comparable period of 2023. We expect this uptick to have continued in the third quarter, supporting the company’s revenues and cash flows.
On a further bullish note, the fall in Cheniere Energy’s costs might have buoyed its to-be-reported bottom line. In the previous three-month period, the company’s total operating expenses fell 7.3% from the year-ago period. This downtrend is likely to have continued in the third quarter as well due to LNG’s successful expense management initiatives.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Cheniere Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LNG has an Earnings ESP of +12.1% and a Zacks Rank #3.
Other Stocks to Consider
Cheniere Energy is not the only company looking up this earnings cycle. Here are some other energy firms that you may want to consider on the basis of our model:
Sunoco LP (SUN - Free Report) has an Earnings ESP of +13.44% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov. 6.
The 2024 Zacks Consensus Estimate for Sunoco indicates 154.3% year-over-year earnings per share growth. Valued at around $7.9 billion, SUN has edged up 1.8% 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 on 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.
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.
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Can Cheniere Energy Pull Off a Strong Show in Q3 Earnings?
Cheniere Energy, Inc. (LNG - Free Report) is set to release third-quarter results on Oct. 31. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.87 per share on revenues of $3.7 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s delve into the factors that might have influenced the liquefied natural gas (“LNG”) exporter’s performance in the September quarter. But it’s worth taking a look at Cheniere Energy’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based transporter of super-chilled fuel outperformed the consensus mark on lower costs and expenses. Cheniere Energy had reported adjusted earnings per share of $3.84, which beat the Zacks Consensus Estimate of $1.71. However, the company’s quarterly revenues of $3.3 billion missed the Zacks Consensus Estimate by 4.3% due to weaker-than-expected LNG sales.
LNG beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two, resulting in an earnings surprise of 55.9%, on average. This is depicted in the graph below:
Cheniere Energy, Inc. Price and EPS Surprise
Cheniere Energy, Inc. price-eps-surprise | Cheniere Energy, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has been revised 3.8% downward in the past seven days. The estimated figure indicates a 21.1% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests an 11.7% decrease from the year-ago period.
Factors to Consider
Cheniere Energy plays a pivotal role in the LNG market, demonstrated by its efficient terminals and robust demand. The company's terminals have consistently exceeded production capacity, showcasing its efficiency and indicating strong demand for Cheniere's natural gas. This underscores Cheniere's significance as a key player in meeting global LNG demand.
LNG shipments for export from the United States have been robust for months on the back of environmental reasons, high prices of the super-chilled fuel elsewhere and the Russia-Ukraine conflict. This augurs well for Cheniere Energy — the dominant U.S. LNG exporter — in the to-be-reported quarter. In the second quarter of 2024, the total volume of LNG exported by Cheniere Energy came in at 553 trillion British thermal units (TBtu), up from 536 TBtu in the comparable period of 2023. We expect this uptick to have continued in the third quarter, supporting the company’s revenues and cash flows.
On a further bullish note, the fall in Cheniere Energy’s costs might have buoyed its to-be-reported bottom line. In the previous three-month period, the company’s total operating expenses fell 7.3% from the year-ago period. This downtrend is likely to have continued in the third quarter as well due to LNG’s successful expense management initiatives.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Cheniere Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LNG has an Earnings ESP of +12.1% and a Zacks Rank #3.
Other Stocks to Consider
Cheniere Energy is not the only company looking up this earnings cycle. Here are some other energy firms that you may want to consider on the basis of our model:
Sunoco LP (SUN - Free Report) has an Earnings ESP of +13.44% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov. 6.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The 2024 Zacks Consensus Estimate for Sunoco indicates 154.3% year-over-year earnings per share growth. Valued at around $7.9 billion, SUN has edged up 1.8% 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 on 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.
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.