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Energy Stock Q2 Earnings to Watch on Jul 20: SLB, BHGE, ECA
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The Q2 earnings season has just started off, with releases from only 48 S&P 500 members. The companies recorded year-over-year earnings growth of 23% on 10% higher revenues.
Around 89.6% of the S&P 500 companies surpassed the Zacks Consensus Estimate for earnings, while 83.3% beat the revenue mark. Notably, 75% surpassed the Zacks Consensus Estimate for both earnings and revenues.
Energy to See Strongest Earnings Growth
Among all the Zacks sectors defining the elite S&P 500 index, Energy is poised to witness the highest earnings growth. This time, we expect Energy to be the only sector posting triple-digit earnings growth of 136.9%.
Excluding Energy, the S&P 500’s earnings growth will likely slip to 17% from 20.4%. In the last few quarters, Energy continued to be the key sector backing the index’s earnings growth, per the latest Earnings Trends.
Heathy Oil Price to Back Energy
For the month of April, May and June of 2018, average West Texas Intermediate (WTI) crude prices were recorded at a respective $66.25 per barrel, $69.98 and $67.87 — per data from the U.S. Energy Information Administration (EIA). These average prices were considerably higher than the year-ago respective prices of $51.06, $48.48 and $45.18.
It is to be noted that since 2015, the average monthly crude pricing scenario through second-quarter 2018 has been the healthiest.
The fate of most energy players is linked to the price of oil. Upstream energy players like explorers and producers as well as oilfield services players generally gain from a rally in crude price.
Stocks to Watch
We have highlighted three energy players gearing up to report second-quarter 2018 results on Jul 20.
Headquartered in Houston, TX, Schlumberger Limited (SLB - Free Report) managed to surpass the Zacks Consensus Estimate for earnings in two of the last four quarters, the average positive surprise being 6.4%.
Our proven model does not show a beat for Schlumberger this earnings season. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Based in Houston, TX, Baker Hughes, a GE company posted an average negative earnings surprise of 42.49% for the last four quarters.
Our proven model shows that Baker Hughes is unlikely to beat estimates this earnings season as the oilfield services firm carries a Zacks Rank #4 (Sell) and an Earnings ESP of -9.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Energy Stock Q2 Earnings to Watch on Jul 20: SLB, BHGE, ECA
The Q2 earnings season has just started off, with releases from only 48 S&P 500 members. The companies recorded year-over-year earnings growth of 23% on 10% higher revenues.
Around 89.6% of the S&P 500 companies surpassed the Zacks Consensus Estimate for earnings, while 83.3% beat the revenue mark. Notably, 75% surpassed the Zacks Consensus Estimate for both earnings and revenues.
Energy to See Strongest Earnings Growth
Among all the Zacks sectors defining the elite S&P 500 index, Energy is poised to witness the highest earnings growth. This time, we expect Energy to be the only sector posting triple-digit earnings growth of 136.9%.
Excluding Energy, the S&P 500’s earnings growth will likely slip to 17% from 20.4%. In the last few quarters, Energy continued to be the key sector backing the index’s earnings growth, per the latest Earnings Trends.
Heathy Oil Price to Back Energy
For the month of April, May and June of 2018, average West Texas Intermediate (WTI) crude prices were recorded at a respective $66.25 per barrel, $69.98 and $67.87 — per data from the U.S. Energy Information Administration (EIA). These average prices were considerably higher than the year-ago respective prices of $51.06, $48.48 and $45.18.
It is to be noted that since 2015, the average monthly crude pricing scenario through second-quarter 2018 has been the healthiest.
The fate of most energy players is linked to the price of oil. Upstream energy players like explorers and producers as well as oilfield services players generally gain from a rally in crude price.
Stocks to Watch
We have highlighted three energy players gearing up to report second-quarter 2018 results on Jul 20.
Headquartered in Houston, TX, Schlumberger Limited (SLB - Free Report) managed to surpass the Zacks Consensus Estimate for earnings in two of the last four quarters, the average positive surprise being 6.4%.
Our proven model does not show a beat for Schlumberger this earnings season. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
That is not the case here as the oilfield services player carries an Earnings ESP of -0.08% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Schlumberger Limited Price and EPS Surprise
Schlumberger Limited Price and EPS Surprise | Schlumberger Limited Quote
Based in Houston, TX, Baker Hughes, a GE company posted an average negative earnings surprise of 42.49% for the last four quarters.
Our proven model shows that Baker Hughes is unlikely to beat estimates this earnings season as the oilfield services firm carries a Zacks Rank #4 (Sell) and an Earnings ESP of -9.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Baker Hughes, a GE company Price and EPS Surprise
Baker Hughes, a GE company Price and EPS Surprise | Baker Hughes, a GE company Quote
Encana Corporation , based in Calgary, Alberta, has an average positive earnings surprise of 83.3% for the last four quarters.
Our proven model does not show a beat for Encana this earnings season. This is because it has an Earnings ESP of -23.91% and a Zacks Rank #2. (Read more: Encana to Report Q2 Earnings: What Should You Expect?)
Encana Corporation Price and EPS Surprise
Encana Corporation Price and EPS Surprise | Encana Corporation Quote
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>