Houston-based oil and gas company EOG Resources Inc. (NYSE:EOG) reported a third quarter profit of $2.03 billion, or $3.48 per share, surpassing Wall Street's expectations. After accounting for non-recurring gains, the adjusted earnings stood at $3.44 per share, outperforming Zacks Investment Research's forecast of $2.95 per share by a group of 10 analysts.
Despite a year-on-year decline in earnings, the company still managed to exceed analysts' estimates. The company's GAAP earnings fell from last year's figure of $2.85 billion ($4.86/share) to this year's $2.03 billion ($3.48/share). After adjusting for special items, earnings were at $2.01 billion ($3.44/share), which was higher than the average analyst expectation of $2.99/share as per Thomson Reuters (NYSE:TRI)' data.
EOG Resources' revenue for Q3 also exceeded expectations, hitting $6.21 billion against the seven-analyst prediction of $5.91 billion by Zacks Investment Research. However, the company did experience a significant drop in revenue compared to the same period last year, recording an 18.2% decline from the previous year's figure of $7.59 billion to this year's $6.21 billion.
Despite these challenges, EOG Resources has proven its resilience by outperforming both profit and revenue estimates for the third quarter.
InvestingPro Insights
EOG Resources Inc., with its significant market cap of $74.79B USD, has shown commendable financial strength, as indicated by InvestingPro data. The company's P/E Ratio stands at a modest 8.54, suggesting a potentially undervalued stock relative to its earnings. Additionally, EOG Resources has generated a substantial revenue of $25.23B USD in the last twelve months as of Q2 2023.
InvestingPro Tips further highlight the company's financial stability. EOG Resources holds more cash than debt on its balance sheet, ensuring a secure financial position. The company has also consistently increased its earnings per share, demonstrating a promising growth trajectory. Furthermore, EOG Resources has maintained dividend payments for an impressive 34 consecutive years, reflecting its commitment to rewarding its shareholders.
For those interested in more comprehensive insights, InvestingPro offers a multitude of additional tips and data points. This includes 13 more InvestingPro Tips and extensive real-time metrics about EOG Resources, providing a more in-depth understanding of the company's financial performance.
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