Yahoo Finance How Has EOG Resources’ Stock Performed after 4Q15 Earnings?
Weak Energy Prices Took a Toll on EOG Resources' 4Q15 Earnings
EOG Resources’ stock price action on the day of 4Q15 earnings release
EOG Resources (EOG) announced its 4Q15 earnings on February 25, 2016, after the market close. On the day of the earnings, EOG’s stock price fell by 1.5% to close at $68.50. In after hours price action, EOG’s stock price traded as low as $66.50 before trading closed.
In the last month before the earnings release, EOG’s stock price has increased by ~14%, mainly due to the ~17% increase in crude oil prices during the same period.
EOG’s stock price is in a downtrend
Declining crude oil and natural gas prices over the last one year are dragging the entire upstream sector into a downtrend. As seen in the above chart, EOG’s stock price is in a downtrend where it is making a clear pattern of lower highs and lower lows.
EOG’s 2015 relative performance
In 2015, EOG outperformed the S&P 500 (SPY) upstream companies. EOG lost only ~23%, whereas other oil and gas producers like Noble Energy (NBL), Murphy Oil (MUR), and CONSOL Energy (CNX) were down ~29%, ~56%, and ~77%, respectively.
EOG’s stock price performance after past earnings releases
In the last year, EOG beat the earnings expectations in 3Q15, 2Q15, and 1Q15. EOG reported its 3Q15 earnings after the market close on November 5, 2015. In 3Q15, excluding the one-time items, EOG reported a profit of $0.02 per share, $0.32 better than the consensus for a loss of $0.30 per share. Following the earnings release, despite better-than-expected earnings, EOG’s stock price fell by ~6% in five sessions.
A similar contrarian reaction was observed after 2Q15 and 1Q15 earnings also, when EOG’s stock price fell by ~4% in one session and ~11% in 12 sessions, respectively. In 2Q15 and 1Q15, EOG beat the consensus earnings estimates by $0.18 per share and $0.03 per share, respectively.
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