Range Resources’ stock price action following 2Q16 earnings
Range Resources (RRC) announced its 2Q16 earnings on July 26, 2016, after the Market closed. After the announcement, its stock fell ~1% in the three trading sessions.
It’s worth noting that in the last three months leading up to the earnings, Range Resources stock rose ~5%. This was mainly due to the ~23% increase in natural gas (UNG) (UGAZ) (DGAZ) prices during the same period.
Range Resources’ stock price trend change
After losing ~80% of its market capitalization from April 2014 to January 2016 period, Range Resources (RRC) stock is finally showing signs of a new uptrend. In March 2016, as you can see in the above graph, Range Resources stock made a higher high for the first time in almost two years. Since January 2016, Range Resources stock has risen a whopping 112%.
RRC’s 2016 relative performance
For 2016, RRC is outperforming bigger upstream companies from the S&P 500 (SPY). RRC has risen ~66%. Larger oil and gas producers such as Devon Energy (DVN), Pioneer Natural Resources (PXD), and EOG Resources (EOG) have risen ~14%, ~26%, and ~14%, respectively.
RRC’s stock price behavior after past earnings beats
In the last six quarters, there were five times—1Q16, 4Q15, 3Q15, 1Q15, and 4Q14—that RRC beat earnings expectations.
Range Resources reported its 1Q16 earnings after the Market closed on April 28, 2016. In 1Q16, excluding the one-time items, it reported adjusted loss of $0.10 per share. That was $0.09 better than the consensus for a loss of $0.19 per share. Following the earnings release, better-than-expected earnings saw Range Resources stock rise ~10% in one session.
RRC reported its 4Q15 earnings after the Market closed on February 25, 2016. Excluding the one-time items, RRC reported a profit of $0.25 per share, which was $0.16 better than the consensus for a profit of $0.09 per share. Following the earnings release, better-than-expected earnings saw Range Resources stock rise ~45% in seven sessions.
In 3Q15, excluding the one-time items, RRC reported a profit of $0.03 per share. That was $0.08 better than the consensus for a loss of $0.05 per share. Following the earnings release, better-than-expected earnings saw Range Resources stock rise ~23% in six sessions.
A similar positive reaction was seen after the 1Q15 and 4Q14 earnings, when Range Resources stock rose ~4% and ~5% in one and three sessions, respectively. That was after beating the consensus earnings estimates by $0.03 and $0.11 per share, respectively.