Natural gas producer Comstock Resources (NYSE:CRK) will be reporting earnings this Wednesday after market hours. Here’s what to look for.
Comstock Resources missed analysts’ revenue expectations last quarter, reporting revenues of $342.9 million, down 11.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates. It reported year-on-year oil production growth of 10%.
Is Comstock Resources a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Comstock Resources’s revenue to grow 9.1% year on year, slowing from the 26.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Comstock Resources has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Comstock Resources’s peers in the upstream & integrated segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Range Resources delivered year-on-year revenue growth of 5.4%, beating analysts’ expectations by 1.8%, and EQT reported revenues up 5.2%, falling short of estimates by 3.8%. Range Resources traded up 2.6% following the results while EQT was also up 8.5%.
Read our full analysis of Range Resources’s results here and EQT’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 2.2% on average over the last month. Comstock Resources is down 7.4% during the same time and is heading into earnings with an average analyst price target of $15.58 (compared to the current share price of $13.14).
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