We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ensco (ESV) to Post Q1 Earnings: Is a Beat in the Cards?
Read MoreHide Full Article
Ensco plc , a leading supplier of offshore contract drilling services to the oil and gas industry, is expected to report first-quarter 2017 earnings on Apr 27, before the opening bell.
Last quarter, the company delivered a positive earnings surprise of 80.00%. We note that Ensco surpassed the Zacks Consensus Estimate in three of the preceding four quarters with an average positive surprise of 41.70%.
Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Ensco plc is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +22.22%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Ensco plc carries a Zacks Rank #3 (Hold) which when combined with +22.22% ESP, makes us confident about a positive earnings beat.
Note that stocks with Zacks Ranks #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-Than-Expected Earnings?
Although crude ended the first quarter of this year 5.8% lower, the pricing environment of commodity prices was much healthier than the year-ago quarter, courtesy of the historical OPEC agreement.
The January–March quarter of this year was favorable for oil exploration and production (E&P) companies. The improved rig count data issued by Baker Hughes Inc. clearly indicates that more and more of these firms have been gathering to the U.S oil patches.
Ensco provides offshore drilling services to the energy industry all over the world and is expected to get more contracts from the upstream energy players for drilling oil wells.
Also, shares of Ensco outperformed the Zacks categorized Oil & Gas Drilling industry during the first quarter. During the aforesaid period, shares of the company lost 7.9% compared with 15.7% decrease for the broader industry.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #3. The company is expected to release earnings on Apr 27.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ensco (ESV) to Post Q1 Earnings: Is a Beat in the Cards?
Ensco plc , a leading supplier of offshore contract drilling services to the oil and gas industry, is expected to report first-quarter 2017 earnings on Apr 27, before the opening bell.
Last quarter, the company delivered a positive earnings surprise of 80.00%. We note that Ensco surpassed the Zacks Consensus Estimate in three of the preceding four quarters with an average positive surprise of 41.70%.
Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Ensco plc is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +22.22%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Ensco plc carries a Zacks Rank #3 (Hold) which when combined with +22.22% ESP, makes us confident about a positive earnings beat.
Note that stocks with Zacks Ranks #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-Than-Expected Earnings?
Although crude ended the first quarter of this year 5.8% lower, the pricing environment of commodity prices was much healthier than the year-ago quarter, courtesy of the historical OPEC agreement.
The January–March quarter of this year was favorable for oil exploration and production (E&P) companies. The improved rig count data issued by Baker Hughes Inc. clearly indicates that more and more of these firms have been gathering to the U.S oil patches.
Ensco provides offshore drilling services to the energy industry all over the world and is expected to get more contracts from the upstream energy players for drilling oil wells.
Also, shares of Ensco outperformed the Zacks categorized Oil & Gas Drilling industry during the first quarter. During the aforesaid period, shares of the company lost 7.9% compared with 15.7% decrease for the broader industry.
Other Stocks to Consider
Chesapeake Energy Corp. (CHK - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #3. The company is expected to release earnings on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #3. The company is expected to release earnings on Apr 27.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>