Is a Beat in Store for Chesapeake Energy (CHK) in Q3 Earnings?

Chesapeake Energy Corporation CHK is set to report third-quarter 2022 earnings on Nov 1, after the closing bell.

In the last reported quarter, the upstream energy company’s earnings were $4.87 per share, beating the Zacks Consensus Estimate of $3.74. In the trailing four quarters, Chesapeake Energy beat the Zacks Consensus Estimate for the bottom line thrice and missed the same once, delivering an earnings surprise of 24.5%, on average. This is depicted in the graph below:

Chesapeake Energy Corporation Price and EPS Surprise

Chesapeake Energy Corporation Price and EPS Surprise

Chesapeake Energy Corporation price-eps-surprise | Chesapeake Energy Corporation Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for CHK’s third-quarter earnings per share of $4.48 has witnessed no movement in the past seven days. The consensus estimate suggests a year-over-year increase of 88.2%.

The Zacks Consensus Estimate for the third quarter’s revenues of $1.8 billion indicates a 105.7% improvement from the year-ago reported figure.

What the Quantitative Model Suggests

Our proven model predicts an earnings beat for Chesapeake Energy 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 exactly the case here.

Earnings ESP: Chesapeake Energy has an Earnings ESP of +0.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Chesapeake Energy currently carries a Zacks Rank #2.

Factors Driving Better-Than-Expected Earnings

Per data provided by the U.S. Energy Information Administration (“EIA”), 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’s data.

Being a leading natural gas producer with a strong footprint in Marcellus and Haynesville plays, Chesapeake Energy is likely to have benefited from favorable commodity price.

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 +0.67% and a Zacks Rank of 3.

Diamondback is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.46 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Enterprise Products Partners LP EPD has an Earnings ESP of +0.54% and a Zacks Rank #3.

Enterprise Products is scheduled to release third-quarter earnings on Nov 1. The Zacks Consensus Estimate for EPD’s earnings is pegged at 61 cents per share, suggesting an increase of 17.3% from the prior-year quarter’s reported figure.

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

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Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report
 
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