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Is a Beat in Store for Antero Resources (AR) in Q3 Earnings?

Zacks Equity Research
·4 min read

Antero Resources Corporation AR is set to report third-quarter 2022 earnings on Oct 26, after the closing bell.

In the last reported quarter, the upstream company announced adjusted earnings of $1.69 per share, missing the Zacks Consensus Estimate of $1.92 due to lower natural gas-equivalent production volumes. In the trailing four quarters, Antero Resources’ earnings beat the Zacks Consensus Estimate once and missed the same thrice. This is depicted in the graph below:

Apple Inc. Price and EPS Surprise

Apple Inc. Price and EPS Surprise
Apple Inc. Price and EPS Surprise

Apple Inc. price-eps-surprise | Apple Inc. Quote

Let’s see how things have shaped up prior to this announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of $1.91 has witnessed two upward and two downward revisions over the past 30 days. The estimated figure suggests a massive improvement from the year-ago reported figure.

Similarly, the consensus estimate for third-quarter revenues of $1.98 billion indicates a 270.1% increase from the year-ago reported figure.

What the Quantitative Model Suggests

Our proven model predicts an earnings beat for Antero Resources 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, which is precisely the case here.

Earnings ESP: Antero Resources has an Earnings ESP of +0.89%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Antero Resources currently carries a Zacks Rank #2.

Factors Driving Better-Than-Expected Earnings

Per the U.S. Energy Information Administration (EIA) data, the average natural gas prices in July, August and September were recorded at $7.28 per million Btu, $8.81 per million Btu and $7.88 per million Btu, respectively. In the year-ago respective months, average natural gas prices were reported at $3.84 per million Btu, $4.07 per million Btu and $5.16 per million Btu, per the EIA data.

Being a leading independent natural gas and natural gas liquids company, Antero Resources is likely to have benefited from a favorable commodity price. The Zacks Consensus Estimate for third-quarter combined production is pegged at 305 billion cubic feet equivalent (Bcfe), suggesting an improvement from 299 Bcfe in the year-ago quarter. Our estimate for the metric is pegged at 312 Bcfe, indicating a significant improvement from the year-ago reported figure.

Other Stocks to Consider

Here are some other firms worth considering, as these too have the right combination of elements to beat on earnings in the upcoming quarterly reports:

Viper Energy Partners LP VNOM has an Earnings ESP of +20.24% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Viper Energy is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting an increase of 90.5% from the prior-year quarter’s reported figure.

Diamondback Energy, Inc. FANG has an Earnings ESP of +0.75% and a Zacks Rank #3.

Diamondback is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.47 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Halliburton Company HAL has an Earnings ESP of +1.13% and a Zacks Rank of 2.

Halliburton is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for HAL’s earnings is pegged at 56 cents per share, suggesting a massive increase from the prior-year quarter’s reported figure.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Halliburton Company (HAL) : Free Stock Analysis Report
 
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
 
Antero Resources Corporation (AR) : Free Stock Analysis Report
 
Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
 
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Zacks Investment Research

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