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What Are the Expectations for Concho Resources’ 4Q15 Earnings?

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Dec. 4 2020, Updated 10:53 a.m. ET

Concho Resources’ 4Q15 revenue estimates

Concho Resources (CXO) will release its 4Q15 earnings on February 25, 2016. The estimate for 4Q15 revenue is ~$592.4 million. Revenue in 4Q14 was ~$692.4 million.

In 3Q15, CXO reported revenue of ~$627.5 million, which was ~12% lower than 3Q14 revenue. CXO’s 2Q15 revenue was ~$650 million. CXO’s quarterly revenues have met or beaten expectations in every quarter of 2015.

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Concho’s 4Q15 earnings per share estimate

CXO’s 4Q15 EPS (earnings per share) estimate is ~$0.03. EPS came in at $0.88 in 4Q14 and $0.33 in 3Q15. As we can see in the graph above, analysts’ estimates for 4Q15 are significantly lower than estimates for previous quarters. This is because crude oil prices fell more sharply in 2H15. With crude oil prices falling below $40 per barrel in 4Q15, analysts lowered 4Q15 earnings estimates for many upstream companies including Concho Resources. Lower crude oil prices mean lower price realizations for the company.

In comparison, Hess Corporation (HES) reported a 4Q15 loss per share of $1.40, and Devon Energy Corporation (DVN) reported 4Q15 EPS of $0.77. Apache Corporation (APA) is expected to report a loss per share of ~$0.49 in 4Q15. All these companies make up ~4% of the Vanguard Energy ETF (VDE).

CXO’s fiscal 2015 revenue and earnings estimates

For 2015, analysts expect CXO to report revenue of ~$2.5 billion, ~10% lower than 2014 revenue of $2.7 billion. Analysts expect CXO to report an adjusted EPS of ~$1.0 for 2015, which is much lower than EPS of ~$4.0 in 2014.

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