EQT Corporation EQT is set to report fourth-quarter 2024 earnings on Feb. 18, after the closing bell.

Let us delve into the factors that are anticipated to have affected this natural gas producer’s performance. However, before that, it would be worth reviewing EQT’s performance in the previous quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, the company’s earnings of 12 cents per share beat the Zacks Consensus Estimate of 5 cents, backed by higher sales volumes and average realized prices.

Earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met once, delivering an average surprise of 56.01%. This is depicted in the graph below:

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings per share of 50 cents has witnessed two upward revisions and one downward movement over the past thirty days. The estimated figure suggests an increase of 4.17% from the year-ago reported number.

The Zacks Consensus Estimate for revenues of $1.73 billion indicates an 11.99% improvement from the year-ago reported figure.

Factors to Consider

EQT's focus on increasing production levels, given an improving commodity pricing environment, is likely to have aided the natural gas producer’s earnings in the fourth quarter. This might have resulted in higher sales volumes, contributing positively to both revenues and earnings. As the largest gas producer in the United States, with a strong foothold in the Marcellus shale play, we expect EQT to report almost 5.8% higher natural gas equivalent volumes than the prior-year level.

According to data from the U.S. Energy Information Administration (EIA), spot prices for Henry Hub natural gas averaged $2.20, $2.12, and $3.01 per million Btu in October, November and December, respectively, compared with $2.98, $2.71 and $2.52 in the corresponding periods of 2023. Although natural gas prices have witnessed a year-over-year decline, the increase in production is likely to have neutralized the negatives. 

Additionally, EQT’s focus on reducing operating expenses by lowering upstream lease operating expenses (LOE) and general and administrative costs (G&A) is likely to have aided its profitability in the to-be-reported quarter.

Earnings Whispers

Our proven model indicates an earnings beat for EQT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you will see below.

Earnings ESP: EQT’s Earnings ESP is +7.44%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other promising firms from the energy space that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.

SM Energy SM presently has an Earnings ESP of +0.36% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is scheduled to release fourth-quarter earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.93 per share, suggesting a 23.72% increase from the prior-year reported figure.

Kimbell Royalty KRP has an Earnings ESP of +0.9% and a Zacks Rank #1 at present.

It is scheduled to release fourth-quarter earnings on Feb. 27. The Zacks Consensus Estimate for Kimbell’s earnings is pegged at 19 cents per share, suggesting a 35.71% increase from the prior-year reported figure.

Range Resources Corporation RRC has an Earnings ESP of +1.96% and a Zacks Rank #2 at present.

It is scheduled to release fourth-quarter earnings on Feb. 25. The Zacks Consensus Estimate for earnings is pegged at 55 cents per share, suggesting a 12.7% decrease from the prior-year reported figure.

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