EOG Resources, Inc. EOG is set to report fourth-quarter 2024 results on Feb. 27, after market close.

In the last reported quarter, its adjusted earnings of $2.89 per share beat the Zacks Consensus Estimate of $2.73, primarily driven by higher production volumes.

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

Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, delivering an average surprise of 3.53%. This is depicted in the graph below: 

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. price-eps-surprise | EOG Resources, Inc. Quote

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings per share of $2.55 has witnessed no downward revision and four upward revisions in the past 30 days. The estimated figure suggests an improvement of 19.68% from the prior-year reported number.

The Zacks Consensus Estimate for revenues of $5.88 billion indicates a 7.5% decrease from the year-ago recorded figure.

Factors to Consider

EOG Resources is expected to have maintained a stable performance in the fourth quarter, supported by highly productive acreages in premier oil shale plays like the Permian and Eagle Ford. The company boasts numerous untapped high-quality drilling sites, which strengthen its production outlook and lower risk profile.

However, challenges likely arose due to the softening of natural gas prices. According to data from the U.S. Energy Information Administration, the Natural Gas Henry Hub Spot price declined almost 10.6% in the fourth quarter from the prior-year level, primarily due to increased natural gas production, milder weather conditions reducing heating demand and higher storage levels affecting global energy markets. Additionally, weaker LNG demand from Europe and Asia, coupled with increased renewable energy generation and coal switching, further pressured prices.

These factors are anticipated to have affected demand and pricing dynamics, potentially hampering EOG Resources’ quarterly performance.

Earnings Whispers

Our proven model does not indicate an earnings beat for EOG 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 not the case here, as you will see below.

Earnings ESP: EOG Resources has an Earnings ESP of -1.88%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: EOG currently carries a Zacks Rank #2 (Buy).

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

APA Corporation APA currently has an Earnings ESP of +3.97% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

APA is scheduled to release fourth-quarter earnings on Feb. 26. The Zacks Consensus Estimate for earnings is pegged at $0.97 per share, suggesting a 15.65% decrease from the prior-year reported figure.

Range Resources Corporation RRC currently has an Earnings ESP of +2.54% and a Zacks Rank #3.

RRC is scheduled to release fourth-quarter earnings on Feb. 25. The Zacks Consensus Estimate for earnings is pegged at $0.55 per share, suggesting an almost 12.7% decrease from the prior-year reported figure.

Permian Resources Corporation PR currently has an Earnings ESP of +3.36% and a Zacks Rank #3.

PR is scheduled to release fourth-quarter earnings on Feb. 25. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, indicating a 2.86% decrease from the prior-year reported figure.

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APA Corporation (APA) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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