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How PXD’s Stock Reacted after Previous Earnings Beats

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Pioneer Natural Resources’ stock price action following 2Q16 earnings

Pioneer Natural Resources (PXD) announced its 2Q16 earnings on July 27, 2016, after the market close. After its 2Q16 earnings were announced, Pioneer Natural Resources’ stock price increased by ~8% in the next two trading sessions.

In the last three months leading into the earnings, Pioneer Natural Resources’ stock price has fallen by ~11%, mainly due to the ~8% decrease in crude oil (USO) (UWTI) (DWTI) prices during the same period.

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Pioneer Natural Resources’ stock price trend change

After losing ~56% of its market capitalization between July 2014 and January 2016, Pioneer Natural Resources’ (PXD) stock price is finally showing signs of a new uptrend. In March 2016, Pioneer Natural Resources’ stock price crossed its 200-day moving average.

PXD’s 2016 relative performance

For 2016, PXD is outperforming bigger upstream companies from the S&P 500 (SPY). For 2016, PXD is up by ~30%, whereas bigger oil and gas producers like Devon Energy (DVN), Pioneer Natural Resources (PXD), and EOG Resources (EOG) are up by ~14%, ~26%, and ~14%, respectively.

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PXD’s stock price behavior after past earnings beats

In the last six quarters, there were four occasions (1Q16, 4Q15, 3Q15, and 2Q15) when PXD beat earnings expectations.

Pioneer Natural Resources reported its 1Q16 earnings after the market close on April 25, 2016. In 1Q16, excluding the one-time items, Pioneer Natural Resources (PXD) reported a loss of $0.64 per share, $0.09 better than the consensus for a loss of $0.73 per share. Following the earnings release, better-than-expected earnings saw Pioneer Natural Resources’ stock price increase by ~12% in the two sessions.

PXD reported its 4Q15 earnings after the market close on February 10, 2016. In 4Q15, excluding the one-time items, PXD reported a loss of $0.18 per share, $0.15 better than consensus for a loss of $0.33 per share. Following the earnings release, better-than-expected earnings saw PXD’s stock price increase by ~16% in seven sessions.

For 3Q15 earnings, PXD reported a loss of $0.01 per share, $0.04 better than the consensus for a loss of $0.05 per share. Following the earnings release, better-than-expected earnings saw PXD’s stock price increase by ~6% in the next session.

A similar upward reaction was observed after 2Q15 earnings also when PXD’s stock price increased by ~5% in seven sessions after beating the consensus earnings estimates by $0.07 per share.

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