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Range Resources (RRC) to Post Q1 Earnings: What's in Store?

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Range Resources Corporation RRC is scheduled to report first-quarter 2021 earnings on Apr 26, after the closing bell.

In the last reported quarter, the upstream company announced adjusted earnings of 2 cents per share, which missed the Zacks Consensus Estimate of 6 cents due to decreased commodity prices and low overall production volumes. This was partially offset by a decline in direct operating costs.

Range Resources’ earnings beat the Zacks Consensus Estimate twice and missed on other two occasions in the trailing four quarters, with the average surprise being 62.4%. This is depicted in the graph below:

Range Resources Corporation Price and EPS Surprise

Range Resources Corporation Price and EPS Surprise
Range Resources Corporation Price and EPS Surprise

Range Resources Corporation price-eps-surprise | Range Resources Corporation Quote

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

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of 26 cents has witnessed two upward and downward revisions over the past 30 days. The estimated figure suggests an increase of 550% from the prior-year reported number.

However, the consensus estimate for first-quarter revenues of $570.4 million indicates a 17.8% decline from the year-ago reported figure.

Factors to Consider

As Range Resources is among the top 10 natural gas producers in the United States, the price of the commodity and production volumes are primarily expected to have impacted the bottom line in the first quarter. The Zacks Consensus Estimate for the company’s first-quarter natural gas production is pegged at 1,474 million cubic feet (MMcf), indicating a decline from the year-ago level of 1,601.8 MMcf. The consensus estimate for first-quarter natural gas price (excluding derivatives) is pegged at $2.54 per Mcf, signaling a rise from the year-ago level of $1.74. Although lower production is expected to have affected profits, the negatives are likely to have been offset by higher commodity prices.

Similarly, the Zacks Consensus Estimate for its oil production is pegged at 6,690 barrels per day (bpd), indicating a decline from the year-ago period’s 9,542 bpd. However, the consensus estimate for first-quarter realized oil prices (excluding derivatives) is pegged at $43.15 per barrel, signaling a rise from $41.01 a year ago.

Earnings Whispers

Our proven model does not predict an earnings beat for Range Resources this time around. That is because a stock needs to have both 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: Range Resources has an Earnings ESP of -11.54%. This is because the Most Accurate Estimate for the quarter is currently pegged at 23 cents per share, below the Zacks Consensus Estimate of 26 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Range Resources currently carries a Zacks Rank #3.

Stocks to Consider

While an earnings beat looks uncertain for Range Resources, here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

EOG Resources, Inc. EOG has an Earnings ESP of +15.47% and a Zacks Rank of 1. It is scheduled to report first-quarter results on May 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hess Corporation HES has an Earnings ESP of +18.90% and is a Zacks #3 Ranked player. The company is scheduled to release first-quarter results before the opening bell on Apr 28.

Continental Resources, Inc. CLR has an Earnings ESP of +36.67% and a Zacks Rank #3. The firm is scheduled to release quarterly earnings on Apr 28.

Zacks Top 10 Stocks for 2021

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Hess Corporation (HES) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

Range Resources Corporation (RRC) : Free Stock Analysis Report

Continental Resources, Inc. (CLR) : Free Stock Analysis Report

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