Oil and gas producer Kosmos Energy (NYSE: KOS) will be announcing earnings results this Monday before the bell. Here’s what to expect.
Kosmos Energy missed analysts’ revenue expectations last quarter, reporting revenues of $370.9 million, up 27.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. It reported year-on-year oil production growth of 20.6%.
Is Kosmos Energy 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 Kosmos Energy’s revenue to grow 20.5% year on year, a reversal from the 12.9% decrease 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. Kosmos Energy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Kosmos Energy’s peers in the upstream & integrated segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Weatherford’s revenues decreased 8.2% year on year, beating analysts’ expectations by 3.4%, and Peabody Energy reported revenues up 12.7%, in line with consensus estimates. Weatherford traded up 4.5% following the results while Peabody Energy was down 7.9%.
Read our full analysis of Weatherford’s results here and Peabody Energy’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 7% on average over the last month. Kosmos Energy is up 32.3% during the same time and is heading into earnings with an average analyst price target of $3.07 (compared to the current share price of $2.76).
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