Goodrich Petroleum Corporation
GDP
is set to report third-quarter 2021 results on Nov 4, before the opening bell.
In the last reported quarter, the independent exploration and production company reported earnings of 64 cents per share, beating the Zacks Consensus Estimate of 53 cents owing to improved gas equivalent production.
Goodrich Petroleum beat bottom-line estimates in two of the prior four quarters and missed the same on the other two occasions, the average negative surprise being 26.4%. This is depicted in the graph below:
Goodrich Petroleum Corporation Price and EPS Surprise
Goodrich Petroleum Corporation price-eps-surprise
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Goodrich Petroleum Corporation Quote
Let’s see how things have shaped up prior to this announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for
third-quarter earnings
per share of $1.02 has witnessed zero downward revision and two upward revisions in the past 30 days. The estimated figure suggests an improvement of 666.7% from the prior-year reported number.
The consensus estimate for third-quarter revenues of $45.1 million indicates a 109.9% jump from the year-ago reported figure.
Factors to Consider
The pricing environment of natural gas was much healthier in the September quarter of this year compared to the year-ago quarter. The improvement was owing to the continuing demand for the commodity for power generation use.
Recovered gas price is likely to have helped Goodrich Petroleum, which has a strong footprint in the prolific Haynesville Shale basin, increase natural gas equivalent production. The Zacks Consensus Estimate for total gas equivalent production is pegged at 15.52 billion cubic feet equivalent (Bcfe), suggesting an improvement from 11.5 Bcfe in the prior-year quarter. The company’s third-quarter production guidance of 15.2 Bcfe to 16.1 Bcfe also suggests higher year-over-year production.
Improved gas price and production are likely to have aided the upstream firm’s bottom line.
Earnings Whispers
Our proven model does not indicate an earnings beat for Goodrich Petroleum this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP
: The company’s Earnings ESP is -6.56%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank
: Goodrich Petroleum currently sports a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies from the
Energy
space that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
APA Corporation
APA
has an Earnings ESP of +0.42% and is a Zacks #1 Ranked player. The company is scheduled to release third-quarter results on Nov 3. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
EOG Resources
EOG
has an Earnings ESP of +2.16% and a Zacks Rank of 1. It is scheduled to report third-quarter results on Nov 4.
Earthstone Energy, Inc.
ESTE
has an Earnings ESP of +0.69% and a Zacks Rank #1. The firm is scheduled to release third-quarter earnings on Nov 4.
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