Talisman Expected to Beat Earnings Est - Analyst Blog
April 29 2013 - 11:40AM
Zacks
We expect Canadian energy explorer
Talisman Energy Inc. (TLM) to beat expectations
when it reports first quarter 2013 results before the opening bell
on Wednesday, May 1.
Why a Likely Positive
Surprise?
Our proven model shows that
Talisman is likely to beat earnings because it has the right
combination of two key ingredients.
Positive Zacks
ESP: Earnings Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method), the difference between the
Most Accurate estimate of 5 cents and the Zacks Consensus Estimate
of 4 cents, stands at +25.0%.
Zacks Rank #3
(Hold): Note that stocks with Zacks Rank of #1, 2 and 3
have a significantly higher chance of beating earnings. The Sell
rated stocks (#4 and 5) should never be considered going into an
earnings announcement.
The combination of Talisman’s Zacks
Rank #3 (Hold) and +25.0% ESP makes us confident of a positive
earnings beat this release.
What's Driving
Better-than-Expected Earnings?
The operating environment and
growth prospects seem bright for Talisman, as earnings estimates
for this Calgary, Alberta-based company are on the rise. Over the
last 30 days, the Zacks Consensus Estimate for the first quarter of
2013 has doubled to 4 cents per share.
In particular, Talisman’s major
positions in the prolific Marcellus Shale play in western
Pennsylvania and the nascent Montney formation in northeastern
British Columbia and northwestern Alberta provide significant room
for continued growth.
Moreover, Talisman’s financial
flexibility and strong balance sheet are real assets in this highly
uncertain economy. At the end of 2012, the company had cash balance
of approximately $721 million. Additionally, with no near-term debt
maturities and $3.7 billion in available borrowing capacity, the
company is well equipped to face this environment.
Other Stocks to
Consider
Here are some other energy firms
that warrant a look as these have the right ingredients to report
earnings beat this quarter:
Exterran Partners
L.P. (EXLP) has an earnings ESP of +4.35% and a Zacks Rank
#1 (Strong Buy).
SemGroup Corp.
(SEMG) has an earnings ESP of +28.95% and a Zacks Rank #1 (Strong
Buy).
Delek US Holdings
Inc. (DK)has an earnings ESP of +0.86% and a Zacks Rank #2
(Buy).
DELEK US HLDGS (DK): Free Stock Analysis Report
EXTERRAN PTNRS (EXLP): Free Stock Analysis Report
SEMGROUP CORP-A (SEMG): Free Stock Analysis Report
TALISMAN ENERGY (TLM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research