EOG Resources' Solid EPS and Dividend Boost Investor Confidence

EOG Resources shows mixed results with Q3 revenue misses offset by strong EPS and a dividend increase. Analysts rate it a 'Moderate Buy', affecting stock price outlook favorably.

Date: 06-02-2025

AI Rating: 6

Earnings Per Share (EPS): EOG Resources reported a stronger-than-expected adjusted EPS of $2.89, which contributed positively to investor sentiment and subsequent share price increase of 6.1% the day after the earnings report. However, for fiscal 2024, analysts predict that the EPS will dip nearly 2% year-over-year to $11.46.

Free Cash Flow (FCF): The company generated $1.5 billion in free cash flow, indicating strong financial health and the ability to return value to shareholders.

The overall market performance of EOG has been somewhat mixed when compared to the broader market and its sector. While its shares have gained 16.4% over the past 52 weeks, this underperformed the S&P 500's 21.8% rally. However, on a year-to-date basis, EOG has outperformed the S&P with a 4.1% rise compared to the index's 2.4% increase.

Analysts continue to express confidence in EOG, as seen from the 29 analysts covering the stock, resulting in a consensus rating of 'Moderate Buy', based on a mix of ratings including 14 'Strong Buy' and 15 'Holds'. This rating reflects a positive outlook on the company despite the slight expected dip in EPS.

EOG's upward momentum is further supported by Barclays raising their price target to $140, while the consensus mean price target is $147.75, suggesting significant potential upside from current trading levels.

Stocks: EOG