NEW YORK (TheStreet) -- EOG Resources (EOG - Get Report) shares are up 1% to $110.47 on Monday following news that its crude oil production climbed 42% during the first quarter.
A Barron's report over the weekend stated that the company is poised to increase its yearly earnings 32% this year if trends continue.
TheStreet Ratings team rates EOG RESOURCES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EOG RESOURCES INC (EOG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 27.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
- EOG RESOURCES INC has improved earnings per share by 33.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EOG RESOURCES INC increased its bottom line by earning $4.03 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($5.46 versus $4.03).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 33.6% when compared to the same quarter one year prior, rising from $494.73 million to $660.93 million.
- Net operating cash flow has significantly increased by 59.14% to $2,267.67 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.43%.
- You can view the full analysis from the report here: EOG Ratings Report