How Has EOG Resources’ Stock Price Reacted after Past Earnings Misses?



EOG Resources’ stock price action after 3Q16 earnings

EOG Resources (EOG) announced its 3Q16 earnings on November 3, 2016, after the market closed. After its 3Q16 earnings are announced, EOG Resources’ stock price rose ~1% in the two trading sessions.

It must be noted that in last three months leading up to its 3Q16 earnings release, EOG’s stock price has risen ~12%, mainly due to a ~9% rise in crude oil (USO) (UWTI) (DWTI) prices during the same period.

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Stock price behavior after past earnings misses

In the past seven quarters, EOG has missed the earnings expectations only once—in 4Q14. EOG’s 4Q14 post-earnings reaction was negative, mainly due to the worse-than-consensus earnings report.

In 4Q14, excluding the one-time items, EOG reported a profit of $0.79 per share, which was $0.20 worse than the consensus estimate of $0.99 per share. After the earnings release, worse-than-expected earnings saw EOG Resources’ stock price fall ~12% in three weeks.

EOG’s 2016 relative performance

In 2016, EOG is outperforming bigger upstream companies in the S&P 500 (SPY). In 2016, EOG has risen ~33%, whereas bigger oil and gas producers Marathon Oil (MRO), Murphy Oil (MUR), and Occidental Petroleum (OXY) have risen only ~14%, ~24%, and ~3%, respectively.

Stock price trend change

After losing ~51% of its market capitalization between July 2014 and January 2016, EOG Resources’ stock price is finally showing signs of a new uptrend. In April 2016, EOG’s stock crossed its 200-day moving average and is currently trading ~14% above it. Since hitting its bottom in January 2016, the stock price has risen ~64%.


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