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Pioneer Natural (PXD) to Post Q3 Earnings: A Beat in Store?

Zacks Equity Research

Pioneer Natural Resources Company PXD is set to release third-quarter 2019 results on Nov 4, after the closing bell.

Let’s see how things are shaping up prior to the announcement.

Which Way Are Estimates Headed?

Let’s take a look at the estimate revision trend to get a clear picture of what analysts feel about the upstream energy major prior to the upcoming earnings release.

The Zacks Consensus Estimate for third-quarter earnings of $2.02 per share has seen two upward revisions and eight downward movements in the past 30 days. The figure suggests a year-over-year decline of 2.4%.

Further, the Zacks Consensus Estimate for revenues is pegged at $2.4 billion for the quarter, indicating a decline of 2.2% from the year-ago reported figure.

What Does the Zacks Model Say?

Our proven model predicts an earnings beat for Pioneer Natural 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +1.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Pioneer Natural carries a Zacks Rank #3.

Factors to Consider

Since crude accounts for majority of the company’s production volumes, higher year-over-year production is likely to have favored the company’s earnings in the third-quarter. However, the decline in crude price realizations is expected to have partly offset the positive.

Other Estimates

The Zacks Consensus Estimate for average daily crude oil production volumes of the company is pegged at 213 thousand barrels, suggesting a year-over-year increase of 9.2%. However, the consensus estimate for the average price realizations of the commodity stands at $55 per barrel, indicating a decline of 5.2%.

Past Earnings Highlights

In the last reported quarter, the company delivered earnings of $2.01 per share that beat the Zacks Consensus Estimate of $1.88. Moreover, quarterly earnings increased year over year from $1.41 per share.  

Notably, Pioneer Natural has an average positive earnings surprise of 6.84% for the past four quarters, as shown in the chart below.

Pioneer Natural Resources Company Price and EPS Surprise

 

Pioneer Natural Resources Company Price and EPS Surprise

Pioneer Natural Resources Company price-eps-surprise | Pioneer Natural Resources Company Quote

 

Other Stocks That Warrant a Look

Investors can consider the following players from the energy space that also have the right combination of elements to post an earnings beat this time around.

Plains All American Pipeline LP PAA has an Earnings ESP of +0.43% and a Zacks Rank #3. The company is scheduled to release earnings on Nov 5. You can see the complete list of today’s Zacks #1 Rank stocks here

Cimarex Energy Co. XEC has an Earnings ESP of +1.32% and is Zacks #3 Ranked. The company is slated to release earnings on Nov 4.

Callon Petroleum Company CPE has an Earnings ESP of +0.56% and is Zacks #3 Ranked. The company is scheduled to report earnings on Nov 4.

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Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
 
Cimarex Energy Co (XEC) : Free Stock Analysis Report
 
Callon Petroleum Company (CPE) : Free Stock Analysis Report
 
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
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