Oil and gas producer Magnolia Oil & Gas (NYSE: MGY) will be reporting results this Wednesday after market hours. Here’s what to look for.
Magnolia Oil & Gas beat analysts’ revenue expectations last quarter, reporting revenues of $478.8 million, up 50.1% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates. It reported year-on-year oil production growth of 4.7%.
Is Magnolia Oil & Gas 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 Magnolia Oil & Gas’s revenue to grow 48.5% year on year, a reversal from the 2.5% 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. Magnolia Oil & Gas has a history of exceeding Wall Street’s expectations.
Looking at Magnolia Oil & Gas’s peers in the mixed or offshore upstream e&p segment, some have already reported their Q3 results, giving us a hint as to what we can expect. California Resources’s revenues decreased 52.2% year on year, missing analysts’ expectations by 56.5%, and Weatherford reported a revenue decline of 7.2%, topping estimates by 0.8%. Weatherford traded up 7.8% following the results.
Read our full analysis of California Resources’s results here and Weatherford’s results here.
Investors in the mixed or offshore upstream e&p segment have had steady hands going into earnings, with share prices flat over the last month. Magnolia Oil & Gas is up 4.6% during the same time and is heading into earnings with an average analyst price target of $33.06 (compared to the current share price of $25.11).
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