APA Corporation ( APA Quick Quote APA - Free Report) is set to release fourth-quarter results on Feb 21. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.42 per share on revenues of $2 billion. Let’s delve into the factors that might have influenced the upstream operator’s performance in the December quarter. But it’s worth taking a look at APA’s previous-quarter performance first. Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, the independent oil and gas explorer beat the consensus mark on stronger price realizations and better-than-expected domestic production. APA had reported adjusted earnings per share of 98 cents, ahead of the Zacks Consensus Estimate by 9 cents.
APA beat the Zacks Consensus Estimate for earnings in each of the last four quarters, which resulted in an earnings surprise of 25.1%, on average. This is depicted in the graph below: Factors to Consider
APA is expected to have benefited from the surge in oil and natural gas realizations. As a reflection of this price boost, the Zacks Consensus Estimate for fourth-quarter average sales price for crude and natural gas is pegged at $78 per barrel and $5.12 per thousand cubic feet, respectively, up significantly from a year earlier when the company had fetched $43.21 and $2.27. The year-over-year improvement in realizations has most likely buoyed APA’s revenues and cash flows.
On a somewhat bearish note, the company is likely to have experienced a decline in output due to weakness, unplanned downtime in North Sea and production sharing contracts in Egypt. Consequently, the consensus mark for APA’s volume is pegged at 386,000 barrels of oil-equivalent per day (BOE/d), falling from the prior-year quarter’s level of 410,758 BOE/d. What Does Our Model Say?
The proven Zacks model does not conclusively show that APA is likely to beat fourth-quarter estimates. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Earnings ESP: APA has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at $1.42 per share. Zacks Rank: APA currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season. You can see . the complete list of today’s Zacks #1 Rank stocks here Stocks to Consider
While an earnings beat looks uncertain for APA, here are some firms from the
energy space that you may want to consider on the basis of our model: Pembina Pipeline Corporation ( PBA Quick Quote PBA - Free Report) has an Earnings ESP of +20.43% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 24. PBA is valued at around $18.3 billion. Pembina Pipeline topped the Zacks Consensus Estimate by an average of 4.2% in the trailing four quarters. PBA has gained around 22.9% in a year. Viper Energy Partners LP ( VNOM Quick Quote VNOM - Free Report) has an Earnings ESP of +14.93% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 22. VNOM has topped the Zacks Consensus Estimate by an average of 103.1% in the trailing four quarters, including a 133.3% beat in Q3. Viper Energy Partners has rallied around 72.2% in a year. Diamondback Energy, Inc. ( FANG Quick Quote FANG - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 22. FANG beat earnings estimates in each of the last four quarters — the earnings surprise being 11.7%, on average. Diamondback has surged around 89.6% in a year. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.