Houston, Texas-based EOG Resources, Inc. (EOG) explores, produces, and markets crude oil, natural gas liquids, and natural gas. With a market cap of $76.2 billion, EOG Resources operates in the U.S., the Republic of Trinidad and Tobago, and internationally. It is expected to announce its Q2 earnings after the market closes on Thursday, Aug. 1.
Ahead of the event, analysts expect EOG Resources to report a profit of $3.01 per share, up 20.9% from $2.49 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter grew 4.8% to $2.82, exceeding the consensus estimates by 4.4%.
Looking ahead to fiscal 2024, analysts expect EOG Resources to report an EPS of $12.06, up 3.2% from $11.69 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 5.2% year over year to $12.69.
EOG stock is up 10.8% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 25.4% gains and the S&P 500 Energy Sector SPDR’s (XLE) 12.2% returns over the same time frame.
EOG stock declined by 1.4% following its Q1 results released on May 2. Despite a 1.3% rise in revenue, the company experienced a decline of 11.6% in net income. Its financial performance is closely tied to the volatile oil and gas markets, and its reliance on commodity markets can hurt its revenues and profits. The recent decrease in profits can be attributed to volatility in energy prices that affect the company's revenues and margins.
However, EOG Resources has shown resilience and has been consistent with dividend payouts. Moreover, it repurchased shares worth $759 million in Q1.
The consensus opinion on EOG Resources stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 26 analysts covering the stock 14 recommend a “Strong Buy” and 12 suggest a “Hold” rating. This configuration is slightly less bullish than three months ago, with 15 analysts suggesting a "Strong Buy."
The average target price for EOG Resources is $146.38, indicating a potential upside of 10.4% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
