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Pioneer Natural (PXD) to Report Q4 Earnings: What's in Store?

Zacks Equity Research

Pioneer Natural Resources Company PXD is scheduled to report fourth-quarter 2018 earnings on Feb 13, after the closing bell.  

The company managed to beat the Zacks Consensus Estimate in three of the past four quarters, the average positive earnings surprise being 21.1%. Let’s see how things are shaping up prior to this announcement.  

Which Way Are Estimates Treading?

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

The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.75 has been revised downward from $1.77 in the last seven days. Despite the negative revision, the estimate reflects a year-over-year improvement of 43.4%.

The consensus estimate for fourth-quarter revenues of $2.3 billion indicates an increase of 53.3% from the year-ago quarter.                  

Pioneer Natural Resources Company Price and EPS Surprise

 

Pioneer Natural Resources Company Price and EPS Surprise | Pioneer Natural Resources Company Quote

Factors to Consider

The consensus estimate for total production is pegged at 320 thousand barrels of oil equivalent per day (MBOE/d), up from 305 MBOE/d in the year-ago quarter.  

The Zacks Consensus Estimate for average crude oil sales price is pegged at $66 per barrel, reflecting an increase from $53 in fourth-quarter 2017.

However, the Zacks Consensus Estimate for average sale price of natural gas is pinned at $2.27 per thousand cubic feet (Mcf), showing a fall from the year-ago quarter’s tally of $2.53 per Mcf.

Since Pioneer Natural is involved in exploring and producing oil and natural gas, the lower expected natural gas price is likely to hurt fourth-quarter results. However, higher projected production and oil price will support earnings.

Earnings Whispers

Our proven model does not conclusively show 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 -0.52% as the Most Accurate Estimate is pegged at an earnings of $1.74 per share, while the Zacks Consensus Estimate is at a profit of $1.75. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. 

Zacks Rank: Pioneer Natural carries a Zacks Rank #3, which when combined with an Earnings ESP of -0.52%, lowers the possibility of an earnings surprise.     

Stocks Poised to Beat Estimates

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

Ensco plc ESV, a leading offshore contract driller, has an Earnings ESP of +0.66% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Concho Resources Inc. CXO, a leading oil and gas explorer, has an Earnings ESP of +2.97% and a Zacks Rank #3.

Headquartered in Dallas, TX, Sunoco L.P SUN operates as a motor fuel distributor. The company has an Earnings ESP of +1.56% and sports a Zacks Rank #1.

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