Oil and gas producer SM Energy (NYSE: SM) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
SM Energy beat analysts’ revenue expectations last quarter, reporting revenues of $2.5 billion, up 215% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates. It reported year-on-year oil production per day growth of 98.6%.
Is SM Energy 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 SM Energy’s revenue to grow 162% year on year, improving from the 26.1% 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. SM Energy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at SM Energy’s peers in the upstream & integrated segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Weatherford’s revenues decreased 7.2% year on year, beating analysts’ expectations by 0.8%, and Kosmos Energy reported revenues up 31.7%, falling short of estimates by 13.3%. Weatherford traded up 7.8% following the results.
Read our full analysis of Weatherford’s results here and Kosmos Energy’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 3.9% on average over the last month. SM Energy is up 13.1% during the same time and is heading into earnings with an average analyst price target of $46.22 (compared to the current share price of $39.63).
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