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Antero Resources (AR) to Report Q1 Earnings: What's in Store?

Zacks Equity Research

Antero Resources AR is set to report first-quarter 2020 results on Apr 29, after the closing bell.

In the last reported quarter, the natural gas producer beat the Zacks Consensus Estimate for its bottom line on lower operating expenses. However, the company missed the consensus estimate in three of the prior four quarters, the average negative surprise being 25.5%. This is depicted in the graph below:

Antero Resources Corporation Price and EPS Surprise

 

Antero Resources Corporation Price and EPS Surprise
Antero Resources Corporation Price and EPS Surprise

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

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

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Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of a cent has witnessed one downward revision and two upward revisions over the past 30 days. The estimated figure suggests a decline of roughly 98.0% from the prior-year reported number.

The consensus estimate for first-quarter revenues of $1.01 billion indicates a 17.1% decline from the year-ago reported figure.

Factors to Note

Being an exploration and production company, Antero Resources’ faith in the March quarter have primarily been determined by production volumes and commodity prices.

Notably, the Zacks Consensus Estimate for the first quarter’s average net production is pegged at 3,369 million cubic feet of natural gas equivalent per day (MMcfe/d), indicating an increase from 3,099 MMcfe/d in the year-ago period. The same for natural gas production is pegged at 2,290 MMcf/d, suggesting growth from the year-ago level of 2,211 MMcf/d on the company’s presence in the prolific Appalachian Basin in West Virginia and Ohio.

However, the positives are likely to have been partially offset by lower natural gas prices, owing to a mild winter and an oversupplied commodity market. The Zacks Consensus Estimate for natural gas price (average prices before effects of derivative settlements) is pegged at $1.97 per Mcf, implying a decline from the year-ago level of $3.30.

Earnings Whispers

Our proven model does not indicate an earnings beat for Antero Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases chances of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is -294.44% as the Most Accurate Estimate is pinned at a loss of 2 cents per share but the Zacks Consensus Estimate is pegged at an earnings of a cent. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

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:

Antero Midstream Corporation AM has an Earnings ESP of +8.20% and a Zacks Rank #3. The company is scheduled to release first-quarter results after the closing bell on Apr 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

Concho Resources Inc. CXO has an Earnings ESP of +3.48% and a Zacks Rank of 3. It is scheduled to report first-quarter results on Apr 30, after the closing bell.

Laredo Petroleum, Inc. LPI has an Earnings ESP of +2.50% and a Zacks Rank #3. The firm is scheduled to release earnings on May 6, after the closing bell.

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Antero Midstream Corporation (AM) : Free Stock Analysis Report
 
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Antero Resources Corporation (AR) : Free Stock Analysis Report
 
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