uploads///EOG Q Pre Annotations

How Has EOG Resources’ Stock Price Reacted to Past Results?

By

Aug. 2 2016, Updated 9:04 a.m. ET

EOG Resources’ stock price action

After losing ~51% of its market capitalization between July 2014 and January 2016, EOG Resources’ (EOG) stock price is finally showing signs of a new uptrend. In April 2016 EOG Resources’ stock crossed its 200-day moving average and is currently trading ~2% above it. Since January 2016, EOG Resources’ stock price has risen by ~38%.

Article continues below advertisement

EOG Resources’ relative performance

Recently, EOG has shown relative strength when compared with other crude oil (USO) and natural gas (UNG) producers. In the last three months, EOG Resources’ stock price has increased by ~2%, whereas the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) has remained almost flat during the same period.

EOG Resources’ year-to-date performance

In 2016, EOG has been underperforming bigger upstream companies from S&P 500 (SPY). EOG is up by ~12%, whereas bigger oil and gas producers Murphy Oil (MUR), Pioneer Natural Resources (PXD), and Range Resources (RRC) are up by ~32%, 16%, and ~65%, respectively.

Article continues below advertisement

EOG Resources’ stock price performance after past results

EOG Resources reported its 1Q16 earnings after the market closed on May 5, 2016. In 1Q16, excluding one-time items, EOG Resources reported EPS (earnings per share) of -$0.83, $0.01 better than the EPS of -$0.84. Following the earnings release, in a contrarian reaction, the better-than-expected earnings led to EOG Resources’ stock price decreasing by ~5% in two sessions.

EOG reported its 4Q15 earnings after the market closed on February 25, 2016. In 4Q15, excluding one-time items, EOG reported EPS of -$0.27, $0.05 better than the estimated EPS of -$0.32. Following the earnings release, despite its better-than-expected earnings, EOG Resources’ stock price decreased by ~5% in three sessions.

For 3Q15 earnings, excluding one-time items, EOG reported EPS of $0.02, $0.32 better than the estimated EPS of -$0.30 per share. Following the earnings release, despite the huge beat on earnings, EOG’s stock price decreased by ~6% in five sessions.

A similar contrarian reaction was observed after the 2Q15 and 1Q15 earnings releases, when EOG’s stock price decreased by ~4% in one session and ~11%  in 12 sessions, respectively. In 2Q15 and 1Q15, EOG beat earnings estimates by $0.18 per share and $0.03 per share, respectively. EOG’s 4Q14 post-results reaction was also negative, mainly due to worse-than-expected earnings.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.