Analysts Estimate SM Energy (SM) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates a year-over-year decline in SM Energy's earnings despite an increase in revenues, with the upcoming earnings report expected to be released on October 31, 2024 [1] Earnings Expectations - SM Energy is projected to report quarterly earnings of $1.56 per share, reflecting a year-over-year decrease of 9.8% [2] - Revenues are expected to reach $660.16 million, which is a 3% increase from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate for SM Energy has been revised down by 5.87% over the last 30 days, indicating a bearish sentiment among analysts [3] - The Most Accurate Estimate for SM Energy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.01% [6] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [5] - SM Energy currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [6] Historical Performance - In the last reported quarter, SM Energy exceeded the expected earnings of $1.57 per share by delivering $1.85, resulting in a surprise of +17.83% [7] - Over the past four quarters, SM Energy has consistently beaten consensus EPS estimates [7] Industry Context - In the broader industry context, Comstock Resources is expected to report a loss of $0.15 per share, indicating a significant year-over-year decline of 475% [9] - Comstock's revenue is projected to be $317.33 million, down 15.8% from the previous year, with an Earnings ESP of -8.89% [9]