Oil Stock Q2 Earnings To Watch On Aug 9: LNG, CQH & More

The Q2 earnings season is drawing to a close with 414 S&P 500 members, which account for 85.2% of the index’s total market capitalization, having already reported their results. Total earnings for these companies are down 4.5% year over year due 1% decline in revenues. While 70.3% of these companies beat earnings per share (EPS) estimates, 55.6% surpassed top-line expectations.

Per the Earnings Trends report, the general outlook for the energy sector remains bearish as the sector has registered a massive 76.9% year-over-year decrease in earnings due to a 24.4% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness earnings decline of 0.7% on 2.3% higher revenues.

In spite of a negative growth in both earnings and revenues during the quarter, we note somewhat of a sequential improvement.

With more and more companies slated to report their quarterly results, let’s have a look at how some of the energy companies and partnership are poised ahead of the scheduled announcements.

Cheniere Energy, Inc. (NYSE:LNG) is slated to release Q2 results on Aug 9. Cheniere Energy has an Earnings ESP of +24.49% as the Most Accurate estimate is pegged at a loss of 37 cents and the Zacks Consensus Estimate stands at a loss of 49 cents. This is very meaningful and a leading indicator of a likely positive earnings surprise. The company has a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or a 3 (Hold) have a higher chance on beating on earnings.

The combination of Cheniere Energy’s favorable Zacks Rank and a positive Earnings ESP makes us confident about an earnings beat.

Cheniere Energy Partners LP Holdings, LLC (NYSE:CQH) is set to release Q2 results on Aug 9, before the opening bell. The partnership has an Earnings ESP of 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents. The partnership carries a Zacks Rank #5 (Strong Sell). Note that we caution against Sell-rated stocks (Zacks Rank #4 and 5) going into the earnings announcement, especially when the company or partnership is seeing negative estimate revisions. (Read more: Cheniere Energy Partners: Q2 Earnings to Surprise?)

PDC Energy, Inc. (NASDAQ:PDCE) is expected to release Q2 results on Aug 9. PDC Energy has an Earnings ESP of +25.00% as the Most Accurate estimate is pegged at a loss of 3 cents and the Zacks Consensus Estimate stands at a loss of 4 cents. This is very meaningful and a leading indicator of a likely positive earnings surprise. The company has a Zacks Rank #3.

The combination of PDC Energy’s favorable Zacks Rank and a positive Earnings ESP makes us confident about an earnings beat.

GeoPark Limited (NYSE:GPRK) is expected to release Q2 results on Aug 9. Our proven model does not conclusively show that GeoPark is likely to beat on earnings this quarter. This is because the company has a Zacks Rank #1 but an Earnings ESP of 0.00%. Despite the company’s favorable Zacks Rank, its 0.00% Earnings ESP makes surprise prediction difficult.

Don’t miss out on our full earnings release articles for these oil stocks, as the actual results might hold some surprises!

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