Will Cobalt International Energy Reduce Net Losses in 1Q17?



EPS estimates

Cobalt International Energy (CIE) is set to report its 1Q17 and 2016 earnings on May 1, 2017, before the market opens. For 1Q17, excluding any one-time items, Wall Street analysts expect CIE to report EPS (earnings per share) of -$0.17 to -$0.04. The current consensus EPS estimate for 1Q17 is -$0.12.

On a year-over-year basis, Cobalt International Energy’s 1Q17 current consensus EPS estimate is $0.04 lower than 1Q16 adjusted EPS of -$0.08. Sequentially, CIE’s 1Q17 current consensus EPS estimate is $0.14 higher than -$0.26 in 4Q16.

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CIE’s earnings in 4Q16

In its most recent earnings release in March 2017, Cobalt International Energy reported worse-than-expected EPS of -$0.26. Wall Street analysts were expecting EPS of -$0.13. In 4Q16, the company reported negative but sequentially higher adjusted net income from 3Q16. Its 4Q16 adjusted EPS was $0.04 higher than -$0.30 in 3Q16.

CIE’s peers Diamondback Energy (FANG) and EOG Resources (EOG) reported net income of -$2.2 million (-$0.03 per share) and -$190.0 million (-$0.35 per share), respectively in 4Q16. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80.0% of its total assets in oil and gas exploration companies.

In this series

We’ve already looked at CIE’s 1Q17 earnings expectations. In the rest of this series, we’ll look at its revenues expectations, production, capex (capital expenditure) guidance, and cash flow estimates. We’ll also see what the odds are for CIE to beat its EPS expectation. Finally, we’ll see what Wall Street analysts are saying about Cobalt International Energy ahead of its earnings.

Lets start with CIE’s revenue estimates.


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