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Factors You Must Pay Attention to Ahead of BP's Q3 Earnings
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BP plc (BP - Free Report) is set to report third-quarter 2021 results on Nov 2.
In the last reported quarter, the British energy giant comfortably beat the Zacks Consensus Estimate, which largely reflected higher realizations of commodity prices.
It beat the consensus estimate for the bottom line thrice in the prior four quarters, while missed the same on one occasion, with an average earnings surprise of 43.4%. This is depicted in the graph below:
Let’s see how things have shaped up prior to this announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share of 96 cents has witnessed three upward movements but one downward revision over the past 30 days. The estimated figure suggests an improvement of 3,100% from the prior-year reported number.
The consensus estimate for third-quarter revenues of $39.2 billion indicates an 11.2% decline from the year-ago reported figure.
Factors to Consider
The price of West Texas Intermediate crude improved significantly in the September quarter compared to the year-ago quarter. The massive improvement is attributed to fuel demand recovery, thanks to the rolling out of coronavirus vaccines at a massive scale. On the production side, for the third quarter of this year, the integrated energy player projects upstream production to have improved sequentially on the ramping up of key projects.
The company expects its realized margin to have improved on the refining front, backed by stronger demand. The Zacks Consensus Estimate for total refinery throughputs for the September quarter of this year is pegged at 1,601 thousand barrels per day (MBbl/D), suggesting an improvement from 1,587 MBbl/D in a year-ago quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for BP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases chances of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 96 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BP currently sports a Zacks Rank #1.
Stocks to Consider
Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Continental Resources, Inc. has an Earnings ESP of +2.55% and is a Zacks #1 Ranked player. The company is scheduled to release third-quarter results on Nov 3.
ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank of 1. It is scheduled to report third-quarter results on Nov 2.
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Factors You Must Pay Attention to Ahead of BP's Q3 Earnings
BP plc (BP - Free Report) is set to report third-quarter 2021 results on Nov 2.
In the last reported quarter, the British energy giant comfortably beat the Zacks Consensus Estimate, which largely reflected higher realizations of commodity prices.
It beat the consensus estimate for the bottom line thrice in the prior four quarters, while missed the same on one occasion, with an average earnings surprise of 43.4%. This is depicted in the graph below:
BP p.l.c. Price and EPS Surprise
BP p.l.c. price-eps-surprise | BP p.l.c. Quote
Let’s see how things have shaped up prior to this announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share of 96 cents has witnessed three upward movements but one downward revision over the past 30 days. The estimated figure suggests an improvement of 3,100% from the prior-year reported number.
The consensus estimate for third-quarter revenues of $39.2 billion indicates an 11.2% decline from the year-ago reported figure.
Factors to Consider
The price of West Texas Intermediate crude improved significantly in the September quarter compared to the year-ago quarter. The massive improvement is attributed to fuel demand recovery, thanks to the rolling out of coronavirus vaccines at a massive scale. On the production side, for the third quarter of this year, the integrated energy player projects upstream production to have improved sequentially on the ramping up of key projects.
The company expects its realized margin to have improved on the refining front, backed by stronger demand. The Zacks Consensus Estimate for total refinery throughputs for the September quarter of this year is pegged at 1,601 thousand barrels per day (MBbl/D), suggesting an improvement from 1,587 MBbl/D in a year-ago quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for BP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases chances of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 96 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BP currently sports a Zacks Rank #1.
Stocks to Consider
Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
APA Corporation (APA - Free Report) has an Earnings ESP of +3.77% and a Zacks Rank #1. The firm is scheduled to release third-quarter earnings on Nov 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources, Inc. has an Earnings ESP of +2.55% and is a Zacks #1 Ranked player. The company is scheduled to release third-quarter results on Nov 3.
ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank of 1. It is scheduled to report third-quarter results on Nov 2.