EOG Resources (NYSE:EOG) will announce its third quarter earnings on Monday, November 5, 2012. Analysts have become increasingly bullish on the company in the last month, with consensus earnings per share estimate moving up from $1.05 a share to the current expectation of earnings of $1.07 a share.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything
What to Expect: The consensus estimate for EOG's earnings is $1.07 per share, up 28.9% from a year ago when the company reported earnings of 83 cents per share.
This is an increase from 94 cents three months ago. For the fiscal year, analysts are expecting earnings of $4.71 per share.
EOG is expected to report revenue of $2.76 billion for the quarter, down by 4.4% from last year's figure of $2.89 billion. Revenue of $11.29 billion is expected for the fiscal year.
Company Performance: Revenue increases have been in the double digits for the past four quarters. On average, the figure has risen by 49.6%. The biggest change came in the third quarter of the last fiscal year when revenue rose 82.4%.
The P/E ratio for EOG is 22.3, below the industry average of 41.83. A low P/E ratio may indicate that the market expects relatively slower earnings growth. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: The P/E Ratio: A Good Market-Timing Indicator
Over the past quarter, the stock price has risen to $114.09 from $96.12 on August 2, 2012. EOG's worst recent stretch was when its stock price fell $5.20 per share between September 14, 2012 and September 25, 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. The majority of analysts (18 of 24) rate EOG a buy. Opinion about the stock has worsened recently, as buy ratings have 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.