## Range Resources (RRC) Earnings Preview: What to Expect on October 22nd
Investors are gearing up for Range Resources’ (RRC) quarterly earnings announcement, scheduled for Tuesday, October 22nd. As the market eagerly awaits the release, analysts are forecasting an earnings per share (EPS) of $0.40. However, the real focus will be on whether the company can surpass these estimates and deliver encouraging guidance for the upcoming quarter. Positive guidance can significantly impact stock prices, making it a key factor for investors to watch.
### Past Performance and Market Sentiment
Looking back at Range Resources’ previous earnings releases, the company exceeded EPS expectations by $0.04 in the last quarter. Despite this positive result, the share price dipped by 3.93% in the subsequent trading session. Here’s a breakdown of the company’s recent earnings performance and the resulting stock price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.42 | $0.46 | -4.0% |
| Q1 2024 | $0.57 | $0.69 | 3.0% |
| Q4 2023 | $0.48 | $0.63 | -3.0% |
| Q3 2023 | $0.35 | $0.46 | -1.0% |
It’s worth noting that shares of Range Resources were trading at $29.79 as of October 18th, down 13.17% over the past 52 weeks. This negative trend might lead some long-term shareholders to approach the upcoming earnings announcement with a degree of caution.
### Analyst Opinions and Peer Comparisons
To gain a comprehensive understanding of market sentiment, it’s essential to analyze analyst ratings and expectations. Range Resources currently holds a consensus rating of Neutral, based on 13 analyst ratings. The average one-year price target is $35.38, suggesting a potential upside of 18.76% from current levels.
To provide context, let’s compare Range Resources to three of its major industry peers: Chord Energy, Matador Resources, and Antero Resources.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside |
|—|—|—|—|
| Chord Energy | Outperform | $188.17 | 531.65% |
| Matador Resources | Outperform | $77.33 | 159.58% |
| Antero Resources | Neutral | $32.33 | 8.53% |
As you can see, Chord Energy and Matador Resources are both receiving an Outperform rating from analysts, with significant potential upside in their price targets. Antero Resources, like Range Resources, has a Neutral rating, but with a slightly higher potential upside.
### Key Financial Metrics and Insights
Here’s a breakdown of key financial metrics for Range Resources and its peers, highlighting their relative performance and market positioning.
| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Range Resources | Neutral | -0.00% | $87.29M | 0.74% |
| Chord Energy | Outperform | 38.22% | $357.10M | 3.05% |
| Matador Resources | Outperform | 31.59% | $400.92M | 5.06% |
| Antero Resources | Neutral | 3.86% | $22.41M | -0.94% |
This comparison reveals that Range Resources lags behind its peers in terms of revenue growth and gross profit. However, it ranks highest in return on equity, suggesting potential for efficient capital utilization.
### About Range Resources
Based in Fort Worth, Texas, Range Resources is an independent exploration and production company with a primary focus on the Marcellus Shale in Pennsylvania. As of year-end 2023, the company’s proven reserves totaled 18.1 trillion cubic feet equivalent, with net production reaching 2.14 billion cubic feet equivalent per day. Natural gas accounts for 69% of its production.
### Economic Impact and Financial Analysis
Market Capitalization:
Range Resources’ market capitalization currently falls below industry benchmarks, indicating a smaller scale relative to its peers. This could be attributed to factors such as growth expectations, operational capacity, or investor sentiment.Revenue Growth:
Over a three-month period, Range Resources experienced a decline in revenue growth. As of June 30th, 2024, the company’s revenue dropped by approximately -0.0%. This signifies a decrease in top-line earnings, placing it below the average growth rate among its peers in the Energy sector.Net Margin:
Range Resources’ net margin is below industry standards, highlighting potential challenges in achieving strong profitability. With a net margin of 5.56%, the company may face difficulties in effectively controlling costs.Return on Equity (ROE):
The company’s ROE is also below industry benchmarks, indicating potential challenges in efficiently using equity capital to generate satisfactory returns for shareholders.Return on Assets (ROA):
Similar to ROE, Range Resources’ ROA falls below industry standards, suggesting difficulties in generating optimal returns from its assets.Debt Management:
Despite these challenges, Range Resources demonstrates a more conservative financial approach with a debt-to-equity ratio below the industry average at 0.48, indicating lower reliance on debt financing.### Key Takeaways
While Range Resources faces some challenges with revenue growth, profitability, and asset utilization, its commitment to the Marcellus Shale and its efficient capital management might offer some upside potential. Investors should closely monitor the company’s guidance and performance relative to its peers when assessing the upcoming earnings release.
To stay up-to-date on all earnings releases for Range Resources, be sure to visit our earnings calendar on our site.