Natural gas producer Expand Energy (NASDAQ: EXE) will be reporting earnings this Tuesday after the bell. Here’s what to look for.
Expand Energy beat analysts’ revenue expectations last quarter, reporting revenues of $2.51 billion, down 10.6% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. It reported a year-on-year oil production per day decline of 22.2%.
Is Expand Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Expand Energy’s revenue to decline 28.5% year on year, a reversal from the 319% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Expand Energy has a history of exceeding Wall Street’s expectations.
Looking at Expand Energy’s peers in the upstream & integrated segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Kinder Morgan delivered year-on-year revenue growth of 9.3%, beating analysts’ expectations by 20.4%, and SLB reported revenues up 5.8%, topping estimates by 1.7%. Kinder Morgan’s stock price was unchanged following the results.
Read our full analysis of Kinder Morgan’s results here and SLB’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 5.2% on average over the last month. Expand Energy is up 9.3% during the same time and is heading into earnings with an average analyst price target of $123.37 (compared to the current share price of $93.24).
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