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Encana (ECA) Q3 Earnings Miss, Revenues Beat Estimates

Have you been eager to see how Encana Corp. ECA – one of the largest gas producers in North America – performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Calgary, Alberta-based behemoth’s earnings release this morning:

About Encana: Encana is a focused pure-play natural gas exploration and production company. It holds a highly competitive land and resource position in a number of the region's most promising shale and tight gas resource plays. This provides the company with a low risk, long-life, and sustainable growth profile.

Zacks Rank & Surprise History: Currently, Encana has a Zacks Rank #3 (Hold) but that could change following its third quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Coming to earnings surprise history, the company has an impressive record: the company has beaten estimates in each of the last four quarters.

Estimate Revision Trend: Investors should note that the earnings estimate revisions for Encana was revised downwards by 28.6% in the last 60 days. The Zacks Consensus Estimate remained the same over the last 7 days.

Encana Corporation Price and EPS Surprise

Encana Corporation Price and EPS Surprise | Encana Corporation Quote

We have highlighted some of the key details from the just-released announcement below:

A Lower-than-Expected Profit: Encana announced operating earnings per share of 2 cents, below the Zacks Consensus Estimate of 5 cents.

Revenue Surpassed Estimates: Total revenues came in at $861 million, which outperformed the Zacks Consensus Estimate of $827 million.

Key Stats: Quarterly natural gas production declined approximately 29% year over year to 939 million cubic feet per day, while liquids production rose 9% year over year to 127.5 thousand barrels per day.

Encana's realized natural gas price were $2.23 per thousand cubic feet, up 10.4% from the year-ago quarter level of $2.02. Meanwhile, realized liquids price rose marginally to $41.86 per barrel from $41.82 in the third quarter of 2016.

Share Performance: Encana has gained 33.8% in the third quarter compared with the 18.1% growth of its industry.

Check back later for our full write up on this Encana earnings report later!

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