EOG Resources (EOG) Stock Down Ahead of Earnings Results

EOG Resources (EOG) stock is down prior to the release of the company's 2015 third quarter financial results, which are due out after the market close today.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of EOG Resources (EOG) - Get Report are falling by 0.45% to $86.08 in mid-morning trading on Thursday, prior to the release of the company's 2015 third quarter financial results, which are due out after the market close today.

Analysts are expecting the company, which is engaged in the exploration, development, production and marketing of crude oil and natural gas, to report a year over year decline in both earnings per share and revenue for the most recent quarter.

EOG Resources has been forecast to report a loss of 30 cents per share on revenue of $2.35 billion for the three month period ending in September.

The company's financial results showed a profit of $1.31 per share on revenue of $5.12 billion for the 2014 third quarter.

Oil companies have been struggling to deal with the constant decline in the commodity's prices due to the global over supply and record production rates.

Separately, TheStreet Ratings team rates EOG RESOURCES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate EOG RESOURCES INC (EOG) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 1.19, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for EOG RESOURCES INC is currently very high, coming in at 73.31%. Regardless of EOG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.21% trails the industry average.
  • EOG, with its decline in revenue, slightly underperformed the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 41.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to $887.37 million or 54.13% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EOG RESOURCES INC's return on equity is below that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: EOG

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...