Comstock (CRK) Q3 Earnings Due: Is it Primed for a Beat?
Comstock Resources, Inc. CRK is set to release third-quarter results results on Nov 1. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.16 per share on revenues of $871 million.
Let’s delve into the factors that might have influenced the independent natural gas producer’s performance in the September quarter. But it’s worth taking a look at Comstock’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Frisco, TX-based upstream player beat the consensus mark on strong production and commodity prices. Comstock had reported adjusted earnings of $1 per share, beating the Zacks Consensus Estimate of 93 cents. Revenues of $946.3 million generated by the firm had also come in 41.4% above the consensus mark.
CRK delivered a four-quarter average earnings surprise of 0.01%. This is depicted in the graph below:
Comstock Resources, Inc. Price and EPS Surprise
Comstock Resources, Inc. price-eps-surprise | Comstock Resources, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 241.2% surge year over year. The Zacks Consensus Estimate for revenues suggests a 70.4% increase from the year-ago period.
Factors to Consider
Comstock Resources is expected to have benefited from the surge in natural gas realizations. As a reflection of this price boost, the Zacks Consensus Estimate for the third-quarter average realized price for the commodity is pegged at $7.64 per thousand cubic feet, up significantly from a year earlier when the company had fetched $3.79. The year-over-year surge in realizations has most likely buoyed the revenues and cash flows of CRK, which produces almost 100% natural gas.
One of the largest operators in the Haynesville shale has also done a fairly admirable job at increasing production. A low-cost provider, the company’s leadership position in Haynesville provides it access to the Gulf Coast and an attractive pricing advantage. Comstock’s 1,900+ high-return net drilling locations support its development program.
Echoing Comstock’s healthy production dynamics, the Zacks Consensus Estimate for the to-be-reported quarter’s total volume stands at 131,300 thousand cubic feet equivalent, edging up 0.3% from the year-ago quarter.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Comstock 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.
CRK has an Earnings ESP of +1.04% and a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Comstock is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
The Williams Companies WMB has an Earnings ESP of +1.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 31.
For 2022, Williams has a projected earnings growth rate of 13.2%. Valued at around $38.8 billion, WMB has gained 13.6% in a year.
Chesapeake Energy Corporation CHK has an Earnings ESP of +0.42% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 1.
Chesapeake Energy topped the Zacks Consensus Estimate by an average of 24.5% in the trailing four quarters, including a 30.2% beat in Q2. Valued at around $12 billion, CHK has gained 49.2% in a year.
Sunoco LP SUN has an Earnings ESP of +3.51% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 1.
For 2022, Sunoco has a projected earnings growth rate of 14.8%. Valued at around $4.2 billion, SUN has edged up 2.7% in a year.
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