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Hess (HES) to Report Q2 Earnings: Is a Beat in the Cards?
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Hess Corporation (HES - Free Report) is scheduled to report second-quarter 2018 results on Jul 25, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 46%. Moreover, Hess delivered an average positive earnings surprise of 10.1% in the trailing four quarters.
Let’s take a look at the estimate revisions to get a clear picture of analyst’s opinion on the stock before the earnings release.
The Zacks Consensus Estimate of a loss of 25 cents for the second quarter witnessed one upward revision and no downward movements in the last seven days. The figure reflects year-over-year growth of 82.9%.
For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $1,462 million, which indicates an increase of 19% from the year-ago quarter’s tally.
Factors to Consider
The Zacks Consensus Estimate for average worldwide realized price of oil (including hedging) is pegged at $53 per barrel, up from $46.97 in the last reported quarter and $45.97 in the year-ago quarter.
Analysts polled by Zacks expect average worldwide realized natural gas price to rise 4% from the preceding quarter and 25.7% from the year-ago quarter to $4.01 per million cubic feet (mmcf).
Per the consensus estimate, average worldwide realized natural gas liquids price are expected to rise 2% from the preceding quarter and 45% from the year-ago quarter to $21.53 per barrel.
The average monthly price of West Texas Intermediate (WTI) crude per barrel for the month of April, May and June of 2018 was recorded at $66.25, $69.98 and $67.87, respectively, per the U.S. Energy Information Administration. The crude hike can be primarily attributed to constant production curbs from OPEC and allies. The positivity in the oil and gas prices will benefit upstream players like Hess.
The Zacks Consensus Estimate for oil production per day is pegged at 120 thousand barrels of oil equivalent per day (Mboe/d), which indicates a decline from 134 Mboe/d in the preceding quarter and 177 Mboe/d in the year-ago quarter.
Per the Zacks Consensus Estimate, natural gas production per day is projected at529mcf, which shows a rise from 504 mcf in the preceding quarter and 487 mcf from the year-ago quarter.
The Zacks Consensus Estimate for natural gas liquids production per day is pegged at 37.4Mboe/d, indicating a rise from 37Mboe/d in the preceding quarter and a decline from 42Mboe/d in the year-ago quarter.
Oil production is anticipated to decline, while gas production is expected to increase. With the increase in shale activities, the company is expected to witness this trend in the upcoming quarters.
Price Performance
During the quarter, the company’s shares gained 32.1% compared with the industry’s 19.7% rally.
Earnings Whispers
Our proven model show that Hess is likely to beat estimates this quarter. 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.
Earnings ESP: Hess’ Earnings ESP is +6.67%. This is because the Most Accurate Estimate is 23 cents and the Zacks Consensus Estimate is pegged at 25 cents. A favorable ESP isa meaningful and leading indicator of a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hess has a Zacks Rank #2.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Occidental Petroleum Corporation (OXY - Free Report) is an international oil and gas exploration and production company. The company has an Earnings ESP of +2.82% and carries a Zacks Rank #2.
Houston, TX-based EOG Resources, Inc (EOG - Free Report) is a major independent oil and gas exploration and production company. The company has an Earnings ESP of +1.36% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Hess (HES) to Report Q2 Earnings: Is a Beat in the Cards?
Hess Corporation (HES - Free Report) is scheduled to report second-quarter 2018 results on Jul 25, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 46%. Moreover, Hess delivered an average positive earnings surprise of 10.1% in the trailing four quarters.
Hess Corporation Price and EPS Surprise
Hess Corporation Price and EPS Surprise | Hess Corporation Quote
Which Way Are Estimates Trending?
Let’s take a look at the estimate revisions to get a clear picture of analyst’s opinion on the stock before the earnings release.
The Zacks Consensus Estimate of a loss of 25 cents for the second quarter witnessed one upward revision and no downward movements in the last seven days. The figure reflects year-over-year growth of 82.9%.
For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $1,462 million, which indicates an increase of 19% from the year-ago quarter’s tally.
Factors to Consider
The Zacks Consensus Estimate for average worldwide realized price of oil (including hedging) is pegged at $53 per barrel, up from $46.97 in the last reported quarter and $45.97 in the year-ago quarter.
Analysts polled by Zacks expect average worldwide realized natural gas price to rise 4% from the preceding quarter and 25.7% from the year-ago quarter to $4.01 per million cubic feet (mmcf).
Per the consensus estimate, average worldwide realized natural gas liquids price are expected to rise 2% from the preceding quarter and 45% from the year-ago quarter to $21.53 per barrel.
The average monthly price of West Texas Intermediate (WTI) crude per barrel for the month of April, May and June of 2018 was recorded at $66.25, $69.98 and $67.87, respectively, per the U.S. Energy Information Administration. The crude hike can be primarily attributed to constant production curbs from OPEC and allies. The positivity in the oil and gas prices will benefit upstream players like Hess.
The Zacks Consensus Estimate for oil production per day is pegged at 120 thousand barrels of oil equivalent per day (Mboe/d), which indicates a decline from 134 Mboe/d in the preceding quarter and 177 Mboe/d in the year-ago quarter.
Per the Zacks Consensus Estimate, natural gas production per day is projected at529mcf, which shows a rise from 504 mcf in the preceding quarter and 487 mcf from the year-ago quarter.
The Zacks Consensus Estimate for natural gas liquids production per day is pegged at 37.4Mboe/d, indicating a rise from 37Mboe/d in the preceding quarter and a decline from 42Mboe/d in the year-ago quarter.
Oil production is anticipated to decline, while gas production is expected to increase. With the increase in shale activities, the company is expected to witness this trend in the upcoming quarters.
Price Performance
During the quarter, the company’s shares gained 32.1% compared with the industry’s 19.7% rally.
Earnings Whispers
Our proven model show that Hess is likely to beat estimates this quarter. 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.
Earnings ESP: Hess’ Earnings ESP is +6.67%. This is because the Most Accurate Estimate is 23 cents and the Zacks Consensus Estimate is pegged at 25 cents. A favorable ESP isa meaningful and leading indicator of a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hess has a Zacks Rank #2.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
ConocoPhillips (COP - Free Report) , based in Houston, TX, is a major global exploration and production (E&P) company. The company has an Earnings ESP of +6.54% and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum Corporation (OXY - Free Report) is an international oil and gas exploration and production company. The company has an Earnings ESP of +2.82% and carries a Zacks Rank #2.
Houston, TX-based EOG Resources, Inc (EOG - Free Report) is a major independent oil and gas exploration and production company. The company has an Earnings ESP of +1.36% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>