What's in the Cards for SM Energy This Earnings Season?

Core Viewpoint - SM Energy Company is expected to report its third-quarter 2024 results on October 31, with previous earnings exceeding estimates due to increased production and high realized prices [1]. Earnings Performance - The company has consistently beaten earnings estimates in the last four quarters, with an average surprise of 11.92% [2]. - The Zacks Consensus Estimate for the upcoming quarter's earnings per share is $1.52, reflecting a 12.1% decline from the previous year's reported figure [2]. Revenue Expectations - The Zacks Consensus Estimate for third-quarter revenues is $651.1 million, indicating a nearly 2% improvement from the year-ago figure [3]. Market Conditions - Average spot prices for West Texas Intermediate crude were $81.80 per barrel in July, $76.68 in August, and $70.24 in September, suggesting a favorable pricing environment for exploration and production activities during the third quarter [4]. - Favorable commodity prices are expected to have positively impacted SM's exploration and production activities, with total production estimated at 15.17 million barrels of oil equivalent (MMBoe), an increase from 14.1 MMBoe in the prior-year quarter [5]. Earnings Prediction - Current analysis does not predict an earnings beat for SM Energy, as the company has an Earnings ESP of -6.29% and a Zacks Rank of 4 (Sell) [6].