Cabot Oil & Gas Corporation (NYSE:COG) is scheduled to release 4Q2015 earnings before the start of trading on Feb. 19. Earnings estimates for the company for the quarter range from EPS loss of $0.10 to EPS profit of $0.15. The company slightly missed earnings expectation in the last quarter, but the previous quarter’s earnings strongly beat expectations.
$0.02 EPS loss
Various analysts have commented on what investors can expect from Cabot Oil & Gas Corporation (NYSE:COG)’s earnings report later this week. Zacks consensus estimate calls for an EPS loss of $0.02. Cabot Oil & Gas posted EPS profit of $0.22 in a similar quarter a year ago. Lower crude oil prices and currency headwinds are some of the factors likely to dim lights on Cabot Oil & Gas’ 4Q2015.
However, there are multiple bright spots in the company that could see a surprise 4Q2015 and set a positive tone for 2016. For example, Cabot Oil & Gas Corporation (NYSE:COG) hedged most of its production in 2015 at fairly attractive prices. That means that the company was less exposed to crude price rout that characterized the year.
Cabot Oil & Gas also has a highly diversified asset portfolio that is both low-risk and large-volume. That asset mix mitigates market pressures for the company, thus lowering its risk profile.
As part of the efforts to deal with collapsing oil prices, Cabot Oil & Gas Corporation (NYSE:COG) planned to lower production in 4Q, which should have a positive impact on earnings in the quarter. Going ahead, Cabot Oil & Gas will spend less this year on capital budget compared to the previous one.
Deutsche Bank lowered their price target on the stock to $24 from $27. Barclays made a similar move, but has an OVERWEIGHT rating on the stock. SunTrust initiated coverage of Cabot Oil & Gas with a BUY rating and price target of $31. GMP Security has a HOLD rating and $22 price target on the stock.
Cabot Oil & Gas Corporation (NYSE:COG) distributed a quarterly dividend of $0.02 per share to its shareholders on Feb. 12.