Cabot Oil & Gas Corp. Earnings: Profits Beat Street

S&P 500 (NYSE:SPY) component Cabot Oil & Gas Corporation (NYSE:COG) posted lower net income in the second quarter compared with a year-earlier period. Cabot Oil & Gas is an independent company engaged in the development, exploitation, and exploration of oil and gas properties in North America.

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Cabot Oil & Gas Corporation Earnings Cheat Sheet

Results: Net income for Cabot Oil & Gas Corporation fell to $35.9 million (17 cents per share) vs. $54.7 million (26 cents per share) a year earlier. This is a decline of 34.3% from the year-earlier quarter.

Revenue: Rose 10.4% to $265.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cabot Oil & Gas Corporation beat the mean analyst estimate of 7 cents per share. Analysts were expecting revenue of $268.4 million.

Quoting Management: “Even with delays occurring in gathering our natural gas, the quarter results once again demonstrated the potential of our prolific acreage, with significant production growth reported over last year,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “Not only did liquids and natural gas production increase year-over-year, both also grew from quarter to quarter. Because of these results and our outlook, we are confidently reaffirming our production guidance.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.4%, with the biggest boost coming in the first quarter when revenue rose 30.2% from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 11 cents versus a mean estimate of net income of 14 cents per share.

Net income has increased more than twofold year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than sevenfold from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 19 cents a share to 10 cents over the last ninety days. For the fiscal year, the average estimate has moved down from 67 cents a share to 43 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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