Can Canadian Natural Resources (CNQ) Q1 Earnings Surprise?
Zacks Investment Research | May 03, 2016 09:18PM ET
Independent oil and gas explorer Canadian Natural Resources Ltd. (TO:CNQ) is set to release its first-quarter 2016 results before the opening bell on Thursday, May 5.
In the preceding three-month period, the Calgary, Alberta-based upstream player delivered a positive earnings surprise of 80.00% on aggressive cost control measures. As far as the earnings surprise history is concerned, the company has a good record: its beaten estimates in 3 of the last four quarters with an average beat of 47.65%.
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Like any other energy player − primarily involved in exploration, development and production of crude oil − the fate of Canadian Natural Resources’ business is directly correlated with crude prices. Continued weakness in commodity prices has significantly affected the company’s revenues, earnings and cash flows.
However, efficiencies on the production front might be able to mitigate some of the damage. In particular, the company boasts of a strong and diverse production base with long-life and low decline rate assets.
Moreover, Canadian Natural Resources has been able to reduce unit costs that will provide some buffer amid the tumbling commodity prices.
Earnings Whispers
Our proven model does not conclusively show that Canadian Natural Resources will beat estimates this quarter. That is because a stock needs to have both a positive Zacks Investment Research
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