Natural gas producer Antero Resources (NYSE: AR) will be reporting results this Wednesday afternoon. Here’s what to look for.
Antero Resources beat analysts’ revenue expectations last quarter, reporting revenues of $1.90 billion, up 43.4% year on year. It was a very strong quarter for the company, with EPS in line with analysts’ estimates. It reported a year-on-year oil production decline of 4.2%.
Is Antero 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 Antero Resources’s revenue to grow 26.6% year on year, slowing from the 28% 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. Antero Resources has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Antero 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. Antero Resources is down 1.7% during the same time and is heading into earnings with an average analyst price target of $48.25 (compared to the current share price of $33.96).
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