EQT’s downtrend and 200-day moving average
Declining crude oil and natural gas prices over the last 18 months are dragging the entire upstream sector downward. As you can see in the graph below, EQT (EQT) is currently decidedly trading below its 200-day moving average by ~22%. EQT’s stock price is on a downward trend and is making a clear pattern of lower highs and lower lows.
EQT’s stock price broke the 200-day moving average in July 2014. Since then, EQT tried to regain its 200-day moving average in November 2014 and April 2015 but failed to hold above it. Last week, EQT’s stock price regained its 50-day moving average on the back of a bounce in natural gas prices over the last month.
EQT has shown less relative strength and has been getting sold off compared to other upstream stocks. Its weakness was evident in its 2015 decline of ~31%. Other large oil and gas producers from the SPDR S&P 500 ETF (SPY) such as Occidental Petroleum (OXY), Cimarex Energy (XEC), and Pioneer Natural Resources (PXD) fell ~13%, ~15%, and ~16%, respectively.
EQT’s 3Q15 earnings
In 3Q15, excluding the one-time items, EQT reported a loss of $0.33 per share. That was $0.11 worse than the analyst consensus of a loss of $0.22 per share. Its revenues fell ~28% year-over-year to ~$416 million.
What do these headline numbers mean? Are these numbers good or bad for EQT? Why is EQT stock in a downward trend and stretched below its 200-day moving average? We’ll attempt to answer these questions in the rest of this series, taking a close look at EQT’s earnings, past events, various fundamental ratios, and key drivers for its stock price movement.