Filed Under: ,
Tickers in this Article: EOG
EOG Resources (NYSE:EOG) will release its second quarter earnings on Friday, August 3, 2012. Analysts have become increasingly bearish on the company over the last month, with the consensus analyst estimate slipping from $1.05 a share to the current prediction of earnings of 93 cents a share.

Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season

What to Expect: The consensus estimate is down from three months ago when it was $1.21. Analysts are expecting earnings of $4.23 per share for the fiscal year.

EOG's expected revenue of $2.52 billion for the quarter is below last year's reported figure of $2.57 billion by 2%. Revenue for the fiscal year is expected to come in at $10.85 billion.

Company Performance: Over the past four quarters, EOG has reported double-digit revenue growth. On average, the figure has risen by 68.7%. The biggest change came in the second quarter of the last fiscal year when revenue rose 89.3%.

The P/E ratio for EOG is 21.0, below the industry average of 35.68. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?

The stock price has fallen 8.9% to $99.56 from $109.28 since May 2, 2012. The stock saw one of its worst stretches when its price fell $7.63 per share between May 31, 2012 and June 1, 2012.

The Competition: EOG Resources develops and produces natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad, Tobago, and the United Kingdom. Analysts are optimistic about EOG, with 17 of 24 assigning it a buy rating. They have become increasingly pessimistic about the stock, as the number of buy ratings has dropped slightly over the last three months.

The company's closest competitor in the oil and gas operations industry is Anadarko (APC). Analysts are less optimistic about EOG than about Anadarko. Twenty-one out of 25 analysts rate the latter a buy.

comments powered by Disqus

Trading Center