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.
What's in the Cards for ConocoPhillips' (COP) Q2 Earnings?
Read MoreHide Full Article
ConocoPhillips (COP - Free Report) is scheduled to report second-quarter 2019 results on Jul 30, before the opening bell.
In the last reported quarter, the upstream energy company’s earnings of $1 per share beat the Zacks Consensus Estimate of 92 cents, aided by increased volumes from unconventional assets and higher natural gas price realization. ConocoPhillips beat estimates in the trailing four quarters, delivering average positive earnings surprise of 10.5%.
Let’s see how things are shaping up for this announcement.
Which Way are Estimates Trending?
Let’s take a look at estimate revisions to get a clear picture of what analysts are thinking about the company before the earnings release.
The Zacks Consensus Estimate for second-quarter earnings per share of $1.05 has witnessed one upward revision and three downward revisions by firms in the past 30 days. This estimate is indicative of a 3.7% decline from the year-ago reported earnings of $1.09 per share.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $9.6 billion, suggesting an improvement of 4% from the year-ago reported figure.
Factors at Play
Being primarily involved in the exploration and production of oil and natural gas, ConocoPhillips’ earnings and revenues are directly related to commodity prices. Notably, the West Texas Intermediate (WTI) crude price in second-quarter 2019 was lower than the year-ago period. In April, May and June, WTI averaged $63.86, $60.83 and $54.66 per barrel, respectively, per the U.S. Energy Information Administration. In comparison, WTI averaged $66.25, $69.98 and $67.87 per barrel in the year-ago respective months of 2018. The year-over-year decline in crude price may hurt the company’s upstream businesses, as ConocoPhillips has an oil-heavy portfolio.
The company projects second-quarter 2019 production in the range of 1,240-1,280 thousand barrels of oil equivalent per day (MBoe/d), higher than year-ago level of 1,211 MBoe/d. However, quarterly production is expected to be affected by planned turnarounds in Alaska, Canada and Europe. This will likely result in lower output than the first quarter’s 1,318 MBoe/d.
Earnings Whispers
Our proven model does not predict a beat for ConocoPhillips 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 you will see below.
Earnings ESP: Earnings ESP for the company is -0.14%. This is because the Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate of $1.05. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ConocoPhillips currently carries a Zacks Rank #3. Though a Zacks Rank of 3 increases the predictive power of ESP, a -0.14% ESP makes surprise prediction difficult.
Meanwhile, Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
Stocks to Consider
Though an earnings beat looks uncertain for ConocoPhillips, here are a few energy firms that you may want to consider on the basis of our model. These have the right combination of elements to post an earnings beat in the quarter to be reported:
Holly Energy Partners, L.P. has an Earnings ESP of +1.18% and is a #2 Ranked player. The partnership is anticipated to release second-quarter 2019 earnings on Jul 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
TransCanada Corporation (TRP - Free Report) is set to report second-quarter 2019 earnings on Aug 1. The stock has an Earnings ESP of +0.34% and a Zacks Rank #3.
Enbridge Inc. (ENB - Free Report) is set to report second-quarter 2019 earnings on Aug 2. The stock has an Earnings ESP of +8.88% and a Zacks Rank #3.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
What's in the Cards for ConocoPhillips' (COP) Q2 Earnings?
ConocoPhillips (COP - Free Report) is scheduled to report second-quarter 2019 results on Jul 30, before the opening bell.
In the last reported quarter, the upstream energy company’s earnings of $1 per share beat the Zacks Consensus Estimate of 92 cents, aided by increased volumes from unconventional assets and higher natural gas price realization. ConocoPhillips beat estimates in the trailing four quarters, delivering average positive earnings surprise of 10.5%.
ConocoPhillips Price and EPS Surprise
ConocoPhillips price-eps-surprise | ConocoPhillips Quote
Let’s see how things are shaping up for this announcement.
Which Way are Estimates Trending?
Let’s take a look at estimate revisions to get a clear picture of what analysts are thinking about the company before the earnings release.
The Zacks Consensus Estimate for second-quarter earnings per share of $1.05 has witnessed one upward revision and three downward revisions by firms in the past 30 days. This estimate is indicative of a 3.7% decline from the year-ago reported earnings of $1.09 per share.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $9.6 billion, suggesting an improvement of 4% from the year-ago reported figure.
Factors at Play
Being primarily involved in the exploration and production of oil and natural gas, ConocoPhillips’ earnings and revenues are directly related to commodity prices. Notably, the West Texas Intermediate (WTI) crude price in second-quarter 2019 was lower than the year-ago period. In April, May and June, WTI averaged $63.86, $60.83 and $54.66 per barrel, respectively, per the U.S. Energy Information Administration. In comparison, WTI averaged $66.25, $69.98 and $67.87 per barrel in the year-ago respective months of 2018. The year-over-year decline in crude price may hurt the company’s upstream businesses, as ConocoPhillips has an oil-heavy portfolio.
The company projects second-quarter 2019 production in the range of 1,240-1,280 thousand barrels of oil equivalent per day (MBoe/d), higher than year-ago level of 1,211 MBoe/d. However, quarterly production is expected to be affected by planned turnarounds in Alaska, Canada and Europe. This will likely result in lower output than the first quarter’s 1,318 MBoe/d.
Earnings Whispers
Our proven model does not predict a beat for ConocoPhillips 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 you will see below.
Earnings ESP: Earnings ESP for the company is -0.14%. This is because the Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate of $1.05. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ConocoPhillips currently carries a Zacks Rank #3. Though a Zacks Rank of 3 increases the predictive power of ESP, a -0.14% ESP makes surprise prediction difficult.
Meanwhile, Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
Stocks to Consider
Though an earnings beat looks uncertain for ConocoPhillips, here are a few energy firms that you may want to consider on the basis of our model. These have the right combination of elements to post an earnings beat in the quarter to be reported:
Holly Energy Partners, L.P. has an Earnings ESP of +1.18% and is a #2 Ranked player. The partnership is anticipated to release second-quarter 2019 earnings on Jul 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
TransCanada Corporation (TRP - Free Report) is set to report second-quarter 2019 earnings on Aug 1. The stock has an Earnings ESP of +0.34% and a Zacks Rank #3.
Enbridge Inc. (ENB - Free Report) is set to report second-quarter 2019 earnings on Aug 2. The stock has an Earnings ESP of +8.88% and a Zacks Rank #3.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>