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Factors Likely to Determine the Fate of BP in Q3 Earnings
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BP plc (BP - Free Report) is set to report third-quarter 2023 results on Oct 31, before the opening bell.
In the last reported quarter, the leading integrated energy company’s adjusted earnings of 89 cents per American Depositary Share on a replacement-cost basis (excluding non-operating items) missed the Zacks Consensus Estimate of earnings of $1.17 per share due to lower realizations of commodity prices and a decline in refinery throughputs.
In the trailing four quarters, BP beat the Zacks Consensus Estimate for earnings twice and missed the same twice, the average earnings surprise being 7.7%. This is depicted in the graph below:
Let’s see how things have shaped up prior to this announcement.
Estimate Trend
The Zacks Consensus Estimate for BP’s third-quarter earnings per share of $1.37 has witnessed three upward movements and no downward revision over the past 30 days. The estimated figure suggests a decline of 47% from the prior-year reported number.
The Zacks Consensus Estimate for third-quarter revenues of $66.3 billion indicates a 14.7% increase from the year-ago reported figure.
Factors to Note
The pricing scenario of oil and natural gas was impressive in the third quarter. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.
The Zacks Consensus Estimate for BP’s sales and other operating revenues is pegged at $58,084 million, suggesting an increase from the $55,011 million reported in the year-ago quarter. Our estimate for the same is pinned at $63,735 million, indicating a massive year-over-year increase.
However, the Zacks Consensus Estimate for BP’s replacement cost profit before interest and tax from oil production and operations is pegged at $3,201 million, suggesting a decline from the $5,211 million reported in the year-ago quarter. Our estimate for the same is expected to decline 38% year over year.
This is likely to have affected BP’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for BP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.37 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BP currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting a decline from the year-ago reported figure.
Antero Resources Corporation (AR - Free Report) has an Earnings ESP of +1,219.97% and is currently a Zacks #3 Ranked player.
The company is scheduled to release third-quarter results on Oct 25.
Antero Midstream Corporation (AM - Free Report) has an Earnings ESP of +8.17% and is a Zacks #2 Ranked player at present.
Antero Midstream is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for AM’s earnings is pegged at 21 cents per share, suggesting a year-over-year improvement of 5%.
Image: Bigstock
Factors Likely to Determine the Fate of BP in Q3 Earnings
BP plc (BP - Free Report) is set to report third-quarter 2023 results on Oct 31, before the opening bell.
In the last reported quarter, the leading integrated energy company’s adjusted earnings of 89 cents per American Depositary Share on a replacement-cost basis (excluding non-operating items) missed the Zacks Consensus Estimate of earnings of $1.17 per share due to lower realizations of commodity prices and a decline in refinery throughputs.
In the trailing four quarters, BP beat the Zacks Consensus Estimate for earnings twice and missed the same twice, the average earnings surprise being 7.7%. This is depicted in the graph below:
BP p.l.c. Price and EPS Surprise
BP p.l.c. price-eps-surprise | BP p.l.c. Quote
Let’s see how things have shaped up prior to this announcement.
Estimate Trend
The Zacks Consensus Estimate for BP’s third-quarter earnings per share of $1.37 has witnessed three upward movements and no downward revision over the past 30 days. The estimated figure suggests a decline of 47% from the prior-year reported number.
The Zacks Consensus Estimate for third-quarter revenues of $66.3 billion indicates a 14.7% increase from the year-ago reported figure.
Factors to Note
The pricing scenario of oil and natural gas was impressive in the third quarter. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.
The Zacks Consensus Estimate for BP’s sales and other operating revenues is pegged at $58,084 million, suggesting an increase from the $55,011 million reported in the year-ago quarter. Our estimate for the same is pinned at $63,735 million, indicating a massive year-over-year increase.
However, the Zacks Consensus Estimate for BP’s replacement cost profit before interest and tax from oil production and operations is pegged at $3,201 million, suggesting a decline from the $5,211 million reported in the year-ago quarter. Our estimate for the same is expected to decline 38% year over year.
This is likely to have affected BP’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for BP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.37 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BP currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Viper Energy Partners LP (VNOM - Free Report) currently has an Earnings ESP of +15.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting a decline from the year-ago reported figure.
Antero Resources Corporation (AR - Free Report) has an Earnings ESP of +1,219.97% and is currently a Zacks #3 Ranked player.
The company is scheduled to release third-quarter results on Oct 25.
Antero Midstream Corporation (AM - Free Report) has an Earnings ESP of +8.17% and is a Zacks #2 Ranked player at present.
Antero Midstream is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for AM’s earnings is pegged at 21 cents per share, suggesting a year-over-year improvement of 5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.