What The Cabot Oil & Gas Corporation (COG) History Tells Us About Likely Reaction To Earnings

14 days have passed by since the last earnings report for Cabot Oil & Gas Corporation (NYSE:COG) and the new quarterly results look set to arrive in 77 days. The shares of COG at the moment are trading at a volume of 8.49 million, which compares with its normal daily standard volume of 7109701 shares. This has led to the shares of the company advancing by 1.2%, currently exchanging hands at $17.67 a share. COG stock has been up by $9.98 (-36.08%) ever since it reached its 52-week high of $27.65 back in April 15, 2019. It has progressed below its 50-day moving average of $21.9 and is down -5.66% over the past week. The stock has retreated -19.9% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the COG share price due for a breakout?

Cabot Oil & Gas Corporation (COG) Forecasts And Latest Quarter Earnings

Ahead of their fiscal third-quarter to be released on Friday, Oct 25, 2019, 25 analysts who are covering the company are estimating that it will record a profit of $0.32 per share, with analysts having different outlooks from $0.21 to $0.46. The current agreed outlook, when compared to the profit recorded last year, is at $0.25 a share, thus an increase of 28% is expected. The profit view for a complete financial year for Cabot Oil & Gas Corporation is expected to be around $1.81 in current year, a decline of nearly 52.1% from last year which was $1.19.

Analyzing The Earnings History Of Cabot Oil & Gas Corporation (NYSE:COG)

In the past few years, the COG stock has been known to miss the Wall Street’s earnings projection. The company missed 50% of the time, according to the data pulled on their earnings, was able to meet predictions on 1 occasions and topped expectations 5 times. Looking at the past trend, the price of Cabot Oil & Gas Corporation shares had risen following the release of their earnings in 20 of the last 37 quarters.

Looking back, here is how Cabot Oil & Gas Corporation (COG) stock reacted to earnings misses and beats. It gave investors reason to cast doubts with the price going down after 2 of the last four earnings reports. The shares of Cabot Oil & Gas Corporation recorded -12.07%, 2.5%, -1.14% and 7.1%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -14.04%, -3.46%, 0.33% and 13.79%. Their post-earnings price movements have resulted in an average decrease of -0.9% and an average decrease of -0.85% in Cabot Oil & Gas Corporation on next day and 7th day, sequentially. COG’s one month stock performance led to its shares declining by -26.47% with a return of -25.69% witnessed over the last 52 weeks.

The higher number of analysts at Reuters has assigned a buy or better ratings (18) on the Cabot Oil & Gas Corporation stock, while 11 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $25.28. This price target implies potential upside of 43.07 percent over the next 12 months based on the current share price.

Cabot Oil & Gas Corporation (COG) Post Earnings Announcement Drift (PEAD)

Back on July 26, 2019, Cabot Oil & Gas Corporation (NYSE:COG) released its Q2 results, in which it recorded EPS of $0.36 that exceeded consensus estimates of $0.34. After the earnings were reported, the price of COG stock kicked off the session at $19.04 and remained in a range of $20.54 to $20.54 on the first day. The shares were priced at $19.16 at the close with a total volume of shares being 22654152.

On April 26, 2019, the Q1 earnings report was disclosed with EPS of $0.73. This was above the estimation of $0.63 per share. The stock price range of COG was between $26.8 and $27.08 on the first-day post announcement, after opening the day at $26.26. The session came to close at $26.66 and there was a total volume of 12312499 shares.

February 22, 2019 was the day when its Q4 results were unveiled. The earnings came in at $0.55, missing the projected $0.58 per share. The very next day, COG stock opened at $23.78 while staying in a range of $24.34 to $25.19. At the end, it moved to $24.26 a total volume of shares been 8461852.

In the year-ago Q3 earnings on October 26, 2018, the company saw profit per share of $0.25. That was worse than the $0.28 analysts had expected. Cabot Oil & Gas Corporation share price started at $21.31 on the first full trading day post-earning and then exchanged hands between $21.37 and $23.34 throughout the session. The closing price of $22.92 came on the back of 15545709 shares in volume.