NEW YORK (TheStreet) -- Cabot Oil & Gas (COG) - Get Cabot Oil & Gas Corporation Report shares are down 0.52% to $21.29 in afternoon trading on Wednesday as falling oil prices take their toll on the oil sector today.
Light, sweet crude for October delivery is down 36 cents to $38.95 per barrel.
International standard Brent crude for October delivery is up 0.32% to $43.35 per barrel, while West Texas crude for October delivery is down 0.53% to $39.10 per barrel.
The fall in prices of U.S. standard West Texas oil comes after weekly U.S. inventory data showed an unexpected drop in demand last week amid record high stockpiles, according to the Wall Street Journal.
Total crude oil and refined products supplies rose by 2.9 million barrels last week to 1.283 billion barrels, the highest its been since data started being tracked in 1990.
TheStreet Ratings team rates CABOT OIL & GAS CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CABOT OIL & GAS CORP (COG) 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. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- COG, with its decline in revenue, slightly underperformed the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 42.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for CABOT OIL & GAS CORP is rather high; currently it is at 51.39%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, COG's net profit margin of -8.98% significantly underperformed when compared to the industry average.
- CABOT OIL & GAS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CABOT OIL & GAS CORP reported lower earnings of $0.24 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus $0.24).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CABOT OIL & GAS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 123.2% when compared to the same quarter one year ago, falling from $118.42 million to -$27.51 million.
- You can view the full analysis from the report here: COG Ratings Report