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Crescent Point (CPG) to Report Q3 Results: What's in Store?

Zacks Equity Research
·4 min read

Crescent Point Energy Corp. CPG is set to release third-quarter results on Oct 26. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 31 cents per share.

Let’s delve into the factors that might have influenced the energy explorer’s results in the September quarter.

Trend in Estimate Revision & Surprise History

The Zacks Consensus Estimate for the third-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 63.2% improvement year over year.

Crescent Point missed the Zacks Consensus Estimate for earnings in three of the last four quarters, resulting in an earnings surprise of -16.6%, on average. This is depicted in the graph below:

Crescent Point Energy Corporation Price and EPS Surprise

Crescent Point Energy Corporation Price and EPS Surprise
Crescent Point Energy Corporation Price and EPS Surprise

Crescent Point Energy Corporation price-eps-surprise | Crescent Point Energy Corporation Quote

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Factors to Consider

Crescent Point Energy is expected to have benefited from strong commodity price realizations. In the April-to-June period, the company’s average oil and natural gas selling prices were up 77% and 120% year over year, respectively. The uptick is most likely to have continued in the third quarter, with commodity prices remaining strong on the back of geopolitical tensions, strained supply and robust demand. This price boost is likely to have buoyed the revenues and cash flows of the Canadian firm.

On a somewhat bearish note, Crescent Point is likely to have experienced a dip in its production. CPG’s average Q2 volume decreased some 13% year over year to 129,176 barrels of oil equivalent per day. The downward output trajectory is likely to have continued in the third quarter after it disposed of the non-core Saskatchewan Viking assets.

The increase in Crescent Point’s costs might have also dented the company’s to-be-reported bottom line. CPG’s operating expense in the first quarter climbed to C$180.5 million from C$170.8 million in the year-earlier period. The upward cost trajectory is likely to have continued in the September quarter due to inflationary pressure across the board.

 

What Does Our Model Say?

The proven Zacks model does not conclusively show that Crescent Point is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: CPG has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 31 cents per share each.

Zacks Rank: Crescent Point currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

While an earnings beat looks uncertain for Crescent Point, here are some firms that you may want to consider on the basis of our model:

Murphy USA MUSA has an Earnings ESP of +12.68% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 26.

You can see the complete list of today’s Zacks #1 Rank stocks here.

For 2022, Murphy USA has a projected earnings growth rate of 69.6%. Valued at around $6.6 billion, MUSA has gained 65% in a year.

PBF Energy PBF has an Earnings ESP of +10.30% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 27.

PBF topped the Zacks Consensus Estimate by an average of 78% in the trailing four quarters, including a 43.8% beat in Q2. PBF has gained 179.8% in a year.

Oceaneering International OII has an Earnings ESP of +50% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 26.

The Zacks Consensus Estimate for OII’s 2022 earnings has been revised 33.3% upward over the past 60 days. Valued at around $905.3 million, Oceaneering International has lost 37.4% in a year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Oceaneering International, Inc. (OII) : Free Stock Analysis Report
 
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
 
PBF Energy Inc. (PBF) : Free Stock Analysis Report
 
Crescent Point Energy Corporation (CPG) : Free Stock Analysis Report
 
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Zacks Investment Research