SM Energy (SM) Q2 Earnings Report Preview: What To Look For

Oil and gas producer SM Energy (NYSE:SM) will be reporting results this Wednesday afternoon. Here’s what to look for.

SM Energy beat analysts’ revenue expectations last quarter, reporting revenues of $1.48 billion, up 75.1% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates. It reported year-on-year oil production per day growth of 83.5%.

Is SM Energy 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 SM Energy’s revenue to grow 167% year on year, improving from the 25% increase 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. SM Energy has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at SM Energy’s peers in the mixed or offshore upstream e&p segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Black Stone Minerals’s revenues decreased 6.6% year on year, beating analysts’ expectations by 40.9%, and Vitesse Energy reported revenues up 11.3%, topping estimates by 8.2%.

Read our full analysis of Black Stone Minerals’s results here and Vitesse Energy’s results here.

There has been positive sentiment among investors in the mixed or offshore upstream e&p segment, with share prices up 6% on average over the last month. SM Energy is up 20.9% during the same time and is heading into earnings with an average analyst price target of $38.40 (compared to the current share price of $32.04).

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.