Antero Resources to report Q3 results: what the market expects

what happened

Natural gas producer Antero Resources (AR) will publish quarterly results on Wednesday after the market closes, according to StockStory. Last quarter revenue reached $1.48 billion, up 22.7% year on year, but it fell short of analyst revenue forecasts, and earnings per share came in well below estimates. Oil production rose 12.8% year on year. The market expects revenue to grow 37.8%, compared with 14.4% growth in the same quarter last year. Over the past 30 days analysts have mostly kept their estimates unchanged, and over the last two years the company has repeatedly missed revenue forecasts.

Among sector peers, Kinder Morgan posted 9.3% revenue growth and beat expectations by 20.4%, while SLB lifted revenue 5.8% and topped estimates by 1.7%. Kinder Morgan's shares were unchanged after its report, while SLB rose 6.4%. Upstream and integrated energy stocks have gained 5.7% on average over the past month, and Antero is up 21.3% in the same period. The average analyst price target stands at $49.64, against a current share price of $41.67.

why it matters

The report matters for natural gas and upstream energy investors as a test of whether revenue expectations match actual results. Past revenue misses and a sizable earnings gap make the stock sensitive to details such as production volumes and gas price trends. After a strong monthly rally, investors will watch closely whether the company meets the market's expectations.

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