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How Has EOG Resources’ Stock Performed ahead of 4Q15 Earnings?

What Do Analysts Expect for EOG Resources’ 4Q15 Earnings?

(Continued from Prior Part)

EOG Resources is in a falling trend

Falling crude oil and natural gas prices over the last year have put the entire upstream sector in a falling trend. As seen in the chart below, EOG Resources’ (EOG) stock is in a falling trend and has been seeing lower highs and lower lows.

EOG’s performance before 4Q15 earnings

Recently, EOG has shown relative strength when compared with other upstream stocks. In the last month, EOG has risen ~16%. Compare this with the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which has risen only ~2% during the same period.

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In 2015, EOG outperformed other upstream companies in the SPDR S&P 500 ETF (SPY). EOF fell only ~23%, whereas Noble Energy (NBL), Murphy Oil (MUR), and Consol Energy (CNX) fell ~29%, ~56%, and ~77%, respectively.

EOG’s performance after past earnings

EOG reported its 3Q15 earnings after the market closed on November 5, 2015. In 3Q15, excluding one-time items, EOG reported earnings per share of $0.02, which was $0.32 better than the consensus estimate of a loss of $0.30 per share. Despite better-than-expected earnings, EOG fell ~6% in the following five trading sessions.

EOG Resources saw a similar contradictory reaction after 2Q15 and 1Q15 earnings, when the stock fell ~4% in one session and ~11% in 12 sessions, respectively. In 2Q15 and 1Q15, EOG Resources beat the consensus earnings estimates by $0.18 per share and $0.03 per share, respectively.

The reaction to EOG Resources’ 4Q14 earnings was also negative, mainly due to the worse-than-consensus earnings report.

Browse this series on Market Realist: