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Encana Stock Reacts to Its 1Q18 Earnings

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Dec. 4 2020, Updated 3:53 p.m. ET

Encana’s 1Q18 earnings

Encana (ECA) announced its 1Q18 earnings on May 1 before the market opened. In 1Q18, Encana reported adjusted revenues of ~$1.31 billion—better than analysts’ consensus of ~$1.22 billion. In 1Q18, Encana reported an adjusted profit of $0.16 per share—better than analysts’ consensus for a profit of $0.13 per share. To learn more about Encana’s net income and revenues, refer to Part 1 and Part 2 in this series.

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Encana stock reacted  

On May 1, in reaction to the 1Q18 earnings, Encana’s stock price gapped down ~2%. As the day progressed, Encana reversed the losses, moved higher, and closed the day with a gain of ~1%. Currently, Encana is trading ~2% higher than its pre-earnings close.

YTD performance

YTD (year-to-date) in 2018, Encana is among the negatively performing upstream companies with a -4% return. Encana is broadly underperforming the SPDR S&P Oil and Gas Exploration & Production ETF (XOP), which represents an index of stocks across the energy industry. XOP has ~78% exposure to the oil and gas exploration and production industry. XOP has risen ~5% in 2018. To learn more about the best and worst upstream stock performers in 2018, read 2018’s Best- and Worst-Performing Upstream Energy Stocks.

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