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Oil & Gas Drilling Earnings on Jul 28: ESV, HP & Others
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With the Q2 earnings season taking center stage, many of the oil & gas drilling companies are scheduled to report their quarterly numbers this week. A study of estimated figures of the companies reporting their earnings shows a modest improvement from the exceptionally weak levels in the last couple of quarters. However, growth for the benchmark S&P 500 index is likely to be negative for the fifth quarter in a row. Nine of the 16 Zacks sectors (as of Jul 22) are projected to underperform.
Oilfield services companies are generally the first to kick-off the earnings season. Some of the premiers from this industry like Core Laboratories NV (CLB - Free Report) and Schlumberger Ltd. (SLB - Free Report) have already reported Q2 results. However, both companies posted lackluster numbers with year-over-year decline in earnings and revenues. The challenging market conditions (especially in North America, which has been the worst hit by the downturn) – both in terms of pricing and activity – led to the underperformance.
Per the Earnings Trends report, the general outlook for energy sector remains bearish as it is expected to register a massive 78.7% year-over-year decrease in earnings due to a 25.4% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness earnings growth of 0.1%.
So far, the 126 S&P 500 members that have released their Q2 results account for a total of 32.7% of the index’s market capitalization. Total earnings for these 126 companies are down 1.1% year over year due 2.6% lower revenues. Of these, 70.6% beat earnings per share (EPS) estimates and 55.6% surpassed top-line expectations.
We now wait to see how other energy sector bigwigs like ConocoPhillips (COP - Free Report) and ExxonMobil Corp (XOM - Free Report) perform when they they report their results.
Meanwhile, let’s have a look at how some of these other energy companies are poised ahead of their earnings announcements.
Ensco plc is expected to release Q2 results on Jul 28, before the market opens. The company has an Earnings ESP of -1.96% and Zacks Rank #5 (Strong Sell). The Most Accurate estimate stands at 50 cents and the Zacks Consensus Estimate is pegged at 51 cents.
In the last quarter, the company’s earnings of 74 cents per share missed the Zacks Consensus Estimate of 80 cents and also plunged 50.3% from the year-ago earnings of $1.49. (Read more: Ensco plc Q2 Earnings: Disappointment in the Cards?)
Helmerich & Payne, Inc. (HP - Free Report) is set to release Q3 results on Jul 28, before the market opens. The company has an Earnings ESP of +7.14% and a Zacks Rank #3 (Hold). The Most Accurate estimate stands at a loss of 39 cents and the Zacks Consensus Estimate is of a loss of 42 cents.
Given that Helmerich & Payne has a Zacks Rank #3 and a positive Earnings ESP investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions raise optimism for the stock. (Read more: Helmerich & Payne: What's Expected in Q3 Earnings?)
Indepenence Contract Drilling, Inc (ICD - Free Report) is slated to release Q2 results on Jul 28. Our proven model does not conclusively show that Indepenence Contract Drilling is likely to beat on earnings this quarter. The company has an Earnings ESP of -27.27% as the Most Accurate estimate is of a loss of 14 cents and the Zacks Consensus Estimate stands at a loss of 11 cents. The company has a Zacks Rank #3 but a negative Earnings ESP makes surprise prediction difficult.
Patterson-UTI Energy Inc (PTEN - Free Report) is set to release Q2 results on Jul 28. Patterson-UTI Energy has an Earnings ESP of +1.59% as the Most Accurate estimate is pegged at a loss of 62 cents and the Zacks Consensus Estimate stands at a loss of 63 cents. This is very meaningful and a leading indicator of a likely positive earnings surprise. The company has a Zacks Rank # 3.
Pioneer Energy Services Corp. is expected to release Q2 results on Jul 28. Our proven model does not conclusively show that Flotek Industries is likely to beat on earnings this quarter. The company has an Earnings ESP of -3.23% as the Most Accurate estimate stands at a loss of 32 cents and the Zacks Consensus Estimate stands at a loss of 31 cents. The company has a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s negative Earnings ESP makes surprise prediction difficult.
Don’t miss out on our full earnings release articles for these two oil refining stocks, as the actual results might hold some surprises!
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Oil & Gas Drilling Earnings on Jul 28: ESV, HP & Others
With the Q2 earnings season taking center stage, many of the oil & gas drilling companies are scheduled to report their quarterly numbers this week. A study of estimated figures of the companies reporting their earnings shows a modest improvement from the exceptionally weak levels in the last couple of quarters. However, growth for the benchmark S&P 500 index is likely to be negative for the fifth quarter in a row. Nine of the 16 Zacks sectors (as of Jul 22) are projected to underperform.
Oilfield services companies are generally the first to kick-off the earnings season. Some of the premiers from this industry like Core Laboratories NV (CLB - Free Report) and Schlumberger Ltd. (SLB - Free Report) have already reported Q2 results. However, both companies posted lackluster numbers with year-over-year decline in earnings and revenues. The challenging market conditions (especially in North America, which has been the worst hit by the downturn) – both in terms of pricing and activity – led to the underperformance.
Per the Earnings Trends report, the general outlook for energy sector remains bearish as it is expected to register a massive 78.7% year-over-year decrease in earnings due to a 25.4% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness earnings growth of 0.1%.
So far, the 126 S&P 500 members that have released their Q2 results account for a total of 32.7% of the index’s market capitalization. Total earnings for these 126 companies are down 1.1% year over year due 2.6% lower revenues. Of these, 70.6% beat earnings per share (EPS) estimates and 55.6% surpassed top-line expectations.
We now wait to see how other energy sector bigwigs like ConocoPhillips (COP - Free Report) and ExxonMobil Corp (XOM - Free Report) perform when they they report their results.
Meanwhile, let’s have a look at how some of these other energy companies are poised ahead of their earnings announcements.
Ensco plc is expected to release Q2 results on Jul 28, before the market opens. The company has an Earnings ESP of -1.96% and Zacks Rank #5 (Strong Sell). The Most Accurate estimate stands at 50 cents and the Zacks Consensus Estimate is pegged at 51 cents.
ENSCO PLC Price and EPS Surprise
ENSCO PLC Price and EPS Surprise | ENSCO PLC Quote
In the last quarter, the company’s earnings of 74 cents per share missed the Zacks Consensus Estimate of 80 cents and also plunged 50.3% from the year-ago earnings of $1.49. (Read more: Ensco plc Q2 Earnings: Disappointment in the Cards?)
Helmerich & Payne, Inc. (HP - Free Report) is set to release Q3 results on Jul 28, before the market opens. The company has an Earnings ESP of +7.14% and a Zacks Rank #3 (Hold). The Most Accurate estimate stands at a loss of 39 cents and the Zacks Consensus Estimate is of a loss of 42 cents.
HELMERICH&PAYNE Price and EPS Surprise
HELMERICH&PAYNE Price and EPS Surprise | HELMERICH&PAYNE Quote
Given that Helmerich & Payne has a Zacks Rank #3 and a positive Earnings ESP investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions raise optimism for the stock. (Read more: Helmerich & Payne: What's Expected in Q3 Earnings?)
Indepenence Contract Drilling, Inc (ICD - Free Report) is slated to release Q2 results on Jul 28. Our proven model does not conclusively show that Indepenence Contract Drilling is likely to beat on earnings this quarter. The company has an Earnings ESP of -27.27% as the Most Accurate estimate is of a loss of 14 cents and the Zacks Consensus Estimate stands at a loss of 11 cents. The company has a Zacks Rank #3 but a negative Earnings ESP makes surprise prediction difficult.
INDEPENDC CONTR Price and EPS Surprise
INDEPENDC CONTR Price and EPS Surprise | INDEPENDC CONTR Quote
Patterson-UTI Energy Inc (PTEN - Free Report) is set to release Q2 results on Jul 28. Patterson-UTI Energy has an Earnings ESP of +1.59% as the Most Accurate estimate is pegged at a loss of 62 cents and the Zacks Consensus Estimate stands at a loss of 63 cents. This is very meaningful and a leading indicator of a likely positive earnings surprise. The company has a Zacks Rank # 3.
PATTERSON-UTI Price and EPS Surprise
PATTERSON-UTI Price and EPS Surprise | PATTERSON-UTI Quote
Pioneer Energy Services Corp. is expected to release Q2 results on Jul 28. Our proven model does not conclusively show that Flotek Industries is likely to beat on earnings this quarter. The company has an Earnings ESP of -3.23% as the Most Accurate estimate stands at a loss of 32 cents and the Zacks Consensus Estimate stands at a loss of 31 cents. The company has a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s negative Earnings ESP makes surprise prediction difficult.
PIONEER EGY SVC Price and EPS Surprise
PIONEER EGY SVC Price and EPS Surprise | PIONEER EGY SVC Quote
Don’t miss out on our full earnings release articles for these two oil refining stocks, as the actual results might hold some surprises!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>