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Pioneer Natural (PXD) to Post Q2 Earnings: What's in Store?

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Pioneer Natural Resources Company  is set to report second-quarter 2019 earnings on Aug 6, after the closing bell.

The company has managed to beat the Zacks Consensus Estimate in two of the past four quarters, the average positive earnings surprise being 3%. Let’s see how things are shaping up prior to this announcement.

Which Way Are Estimates Treading?

Let’s take a look at estimate revisions to get a clear picture of analysts’ opinion on the stock before the earnings release.

The Zacks Consensus Estimate for second-quarter earnings of $1.88 was revised downward from $2.10 in the last seven days. Despite the negative revision, estimates reflect a year-over-year improvement of 33.3%.

The consensus estimate for second-quarter revenues of $2.4 billion indicates an increase of 12.7% from the year-ago quarter’s reported figure.

Factors to Consider

The Zacks Consensus Estimate for total production is pegged at 329 thousand barrels of oil equivalent per day (MBOE/d), calling for marginal growth from 328 MBOE/d in the year-ago quarter.

However, the Zacks Consensus Estimate for average crude oil sales price is pegged at $57 per barrel, suggesting a decline from $61.20 in second-quarter 2018. Moreover, the Zacks Consensus Estimate for average sale price of natural gas is pegged at $1.58 per thousand cubic feet (Mcf), indicating a fall from the year-ago quarter’s figure of $1.97 per Mcf.

Since majority of Pioneer Natural’s production comprises oil, the expected improvement in oil equivalent production is likely to be a tailwind, partially offset by lower projected realization of the commodity price.

Earnings Whispers

Our proven model does not conclusively predict a beat for Pioneer Natural this earnings season. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: Earnings ESP for the company is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.88. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Though Pioneer Natural’s Zacks Rank #3 increases chances of a beat, an Earnings ESP of 0.00% lowers possibility.

Stocks to Consider

Here are some firms that you may want to consider on the basis of our model. These have the right combination of elements to beat earnings this quarter.

Enbridge Inc (ENB - Free Report) has an Earnings ESP of +5.26% and is a #2 Ranked player. The company is slated to release second-quarter 2019 earnings on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NuStar Energy L.P. is set to report second-quarter 2019 earnings on Aug 8. The stock has an Earnings ESP of +14.58% and a Zacks Rank #3.

Cheniere Energy, Inc. (LNG - Free Report) is set to report second-quarter 2019 earnings on Aug 8. The stock has an Earnings ESP of +88.46% and a Zacks Rank #2.

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