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WPX Energy (WPX) to Report Q2 Earnings: What's in the Cards?

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WPX Energy Inc. is scheduled to release second-quarter 2020 results on Jul 29. In the last reported quarter, the company delivered an earnings surprise of 40.0%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

The unprecedented economic crisis caused by the novel coronavirus, and a slowdown of commercial and industrial activities on a global scale lowered the demand for oil, in turn resulting in a drop in prices. However, a substantial portion of WPX Energy’s oil production has been hedged, which provided protection against price fluctuations in the second quarter. The acquisition of Felix Energy is likely to benefit WPX Energy’s results for the second quarter. Cost-saving measures are likely to have aided the company.

Anticipating a likely drop in demand, the company decided to lower production volumes in the second quarter. Lower shares outstanding might have positively impacted earnings in the quarter.

Expectation

The Zacks Consensus Estimate for second-quarter 2020 total production is pegged at 209,000 barrels of oil equivalent per day, which indicates a 30.6% increase from the year-ago reported figure. Out of the total second-quarter production, nearly 60.8% is expected to be oil.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for WPX Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. price-eps-surprise | WPX Energy, Inc. Quote

Earnings ESP: The company’s Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, WPX Energy carries a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Noble Energy is set to release second-quarter results on Aug 3. It has an Earnings ESP of +9.62% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pioneer Natural Resources Company is set to release second-quarter results on Aug 4. It has an Earnings ESP of +8.33% and a Zacks Rank of 3.

EOG Resources (EOG - Free Report) is set to release second-quarter results on Aug 7. It has an Earnings ESP of +5.27% and a Zacks Rank of 2.

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