Natural gas producer Comstock Resources (NYSE: CRK) will be announcing earnings results this Wednesday after market close. Here’s what to look for.
Comstock Resources missed analysts’ revenue expectations last quarter, reporting revenues of $332.5 million, down 4.4% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates. It reported a year-on-year oil production decline of 61.5%.
Is Comstock Resources a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Comstock Resources’s revenue to grow 16.1% year on year, improving from the 10.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Comstock Resources’s peers in the upstream natural gas e&p segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Range Resources delivered year-on-year revenue growth of 17.9%, beating analysts’ expectations by 1.3%, and EQT reported a revenue decline of 9.5%, falling short of estimates by 9.8%. Range Resources’s stock price was unchanged after the resultsand EQT’s price followed a similar reaction.
Read our full analysis of Range Resources’s results here and EQT’s results here.
Investors in the upstream natural gas e&p segment have had steady hands going into earnings, with share prices flat over the last month. Comstock Resources is up 8% during the same time and is heading into earnings with an average analyst price target of $15.30 (compared to the current share price of $14.11).
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