Mineral rights owner Black Stone Minerals (NYSE: BSM) will be reporting results this Monday after market hours. Here’s what you need to know.
Black Stone Minerals beat analysts’ revenue expectations last quarter, reporting revenues of $149 million, down 6.6% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. Its oil production was flat year on year.
Is Black Stone Minerals a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Black Stone Minerals’s revenue to decline 13.9% year on year, a further deceleration from the 1.8% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Black Stone Minerals has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Black Stone Minerals’s peers in the upstream & integrated segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Weatherford’s revenues decreased 7.2% year on year, beating analysts’ expectations by 0.8%, and Expand Energy reported revenues up 11.6%, topping estimates by 54.4%. Weatherford traded up 7.8% following the results while Expand Energy was down 3.2%.
Read our full analysis of Weatherford’s results here and Expand Energy’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 6.2% on average over the last month. Black Stone Minerals is up 1.3% during the same time and is heading into earnings with an average analyst price target of $16 (compared to the current share price of $14.75).
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