Parsley Energy (NYSE:PE) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Parsley Energy, Inc. (NYSE:PE) is scheduled to report Q3 earnings results after markets close for trading on October 28, 2020.

The company is expected to report earnings of $0.20/share on revenue of $441.2 million. The consensus earnings per share (EPS) of $0.20/share is based on a poll of 28 analysts and represents a decline in eps of −32.3% over the same quarter last year, when the company reported earnings of $0.29/share.

The revenue forecast of $441.2 million based on a poll of 14 analysts implies a year-over-year (YoY) decline in revenue of −13.5%. Last year the company reported $510.2 million in revenue for the quarter.

Expected to report EPS contraction of −32.3% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $441.21 $510.15 −13.5%
EPS $0.20 $0.29 −32.3%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, missed 4 quarters, and met expectations 1 quarter.

What are your expectations from Parsley Energy, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.12 $0.03 124.6% Beat
Q1, 2020 $0.24 $0.29 19.7% Beat
Q4, 2019 $0.34 $0.28 −17.1% Missed
Q3, 2019 $0.35 $0.29 −17.7% Missed
Q2, 2019 $0.32 $0.32 0% Met
Q1, 2019 $0.24 $0.22 −9.8% Missed
Q4, 2018 $0.34 $0.30 −12.1% Missed
Q3, 2018 $0.44 $0.45 2.0% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 1.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $10.97 $11.15 1.6% Increase
May 4, 2020 $8.84 $9.23 4.4% Increase
February 19, 2020 $16.43 $17.06 3.8% Increase
November 5, 2019 $17.05 $16.79 −1.5% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −5.98, the model suggests that the company is not likely to be an earnings manipulator. A value of −5.98 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Parsley Energy, Inc. is currently trading at $10.62/share, up 5.1% for the day. The company is trading at approximately 52.8% of its 52-week high of $20.13/share. The company’s stock price is down −4.8% since the last earnings report and up 6.0% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 55.61 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:PE Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −1.10 and a forward P/E multiple of 12.46.

Parsley Energy, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.15. The following table summarizes some other key fundamental ratios:

Data as of October 21, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $10.62
P/E Ratio −1.1x
P/E Ratio (Fwd) 12.5x
PEG Ratio 0.0
Total Debt / Total Capital 43.8%
Levered Free Cash Flow -$34.684 million
EV / EBITDA 5.1x

Finbox

Parsley Energy, Inc. is a mid-cap stock with a market capitalization of $4.011 billion and a total enterprise value of $7.545 billion. The company operates in the Energy sector and the Oil, Gas & Consumable Fuels industry.

Parsley Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, exploration, production, and sale of crude oil and natural gas properties in the Permian Basin in west Texas and Southeastern New Mexico. As of December 31, 2019, its acreage position consisted of 191,179 net acres, including 149,615 net acres in the Midland Basin and 41,564 net acres in the Delaware Basin; and operated 558.9 net acres of the horizontal wells and 723.1 net acres of the vertical wells, as well an estimated proved oil, natural gas, and natural gas liquid reserves of 592.3 MMBoe. The company was founded in 2008 and is headquartered in Austin, Texas.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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