It has been about a month since the last earnings report for EQT Corporation EQT. Shares have lost about 4.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
First-Quarter 2017 Results
EQT Corporation reported first-quarter 2017 adjusted earnings of $0.44 per share, which lagged the Zacks Consensus Estimate of $0.45 owing to significantly higher operating expenses. Earnings, however, increased from the prior-year level of $0.07, primarily due to improved production and higher realized prices.
Net operating revenue in the quarter jumped 64.7% year over year to $897.5 million. The top line also surpassed the Zacks Consensus Estimate of $704.41 million.
Segment Details
EQT Production reported first-quarter operating revenues of $828.7 million, up 71.3% year over year. The upside was mainly driven by higher average realized price, an improvement in production sales volume, and increase in pipeline and net marketing services revenues. This was partially offset by increased operating expenses.
Operating income was $257.4 million. The segment incurred a loss of $5.5 million in first-quarter 2016.
In the EQT Gathering segment, net gathering revenue increased 4.4% year over year to $102.3 million due to 3% higher gathered volumes.
Operating income jumped 1.4% year over year to $73.6 million in the reported quarter.
In the EQT Transmission segment, net transmission revenue grew 15.2% to $101.1 million.
Operating income jumped 11% year over year to $71.5 million in the reported quarter.
Financials
The company’s adjusted operating cash flow was $322.3 million during the quarter, up 48.3% year over year.
EQT Corp.’s capital expenditure totaled $1,015.7 million in the quarter. This includes $945.5 million spent on EQT Production, $48.8 million spent on EQT Gathering and $21.4 million spent on EQT Transmission.
Guidance
Production sales volume for 2017 is projected at 835–855 billion cubic feet equivalent (Bcfe). Liquids volume is estimated at 12,060–12,460 thousand barrel of oil equivalent (MBBl). Production sales volume for second-quarter 2017 is projected at 190–195 Bcfe. Liquids volume is expected in the range of 2,955–2,975 MBBls.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two upward revisions for the current quarter compared to two downward. In the past month, the consensus estimate has shifted upward by 48.1% due to these changes.