Cheniere Energy (LNG) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - Cheniere Energy (LNG) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the earnings report expected on May 3, 2024, which could significantly influence its stock price depending on whether the results meet or exceed expectations [1][2]. Financial Expectations - The consensus estimate for Cheniere Energy's quarterly earnings is $2.34 per share, reflecting a year-over-year decrease of 66$4.16 billion, down 43% from the same quarter last year [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.26%, indicating a reassessment by analysts [2]. - The Most Accurate Estimate for Cheniere Energy is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +7.02%, suggesting a bullish outlook from analysts [5][6]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [4]. - Cheniere Energy's current Zacks Rank is 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [5][6]. Historical Performance - In the last reported quarter, Cheniere Energy had an earnings surprise of +113.33%, posting earnings of $5.76 per share against an expectation of$2.70 [7]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [7]. Industry Context - Murphy Oil (MUR), another player in the oil and gas sector, is expected to report earnings of $0.87 per share, indicating a year-over-year decline of 29.8$736.41 million, down 12.5% [9]. - Murphy Oil's consensus EPS estimate has been revised up by 18.1% over the last 30 days, but it currently has an Earnings ESP of -3.59%, making it difficult to predict an earnings beat [9].