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Factors You Must Pay Attention to Ahead of BP's Q1 Earnings
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BP plc (BP - Free Report) is set to report first-quarter 2022 results on May 3, before the opening bell.
In the last reported quarter, the British energy giant reported adjusted earnings of $1.23 per American Depositary Share (“ADS”) on a replacement cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.18 per share, owing to higher commodity price realizations and stronger refining business.
BP beat the Zack Consensus Estimate for the bottom line in the prior four quarters, with an average earnings surprise of 30.6%. This is depicted in the graph below:
Let’s see how things have shaped up prior to this announcement.
Estimate Trend
The Zacks Consensus Estimate for first-quarter earnings per share of $1.41 has witnessed three upward movements and no downward revision in the past 30 days. The estimated figure suggests an improvement of 83% from the prior-year reported number.
The consensus estimate for first-quarter revenues of $53.1 billion indicates a 45.6% increase from the year-ago reported figure.
Factors to Consider
In the March-end quarter of 2022, the West Texas Intermediate crude price was significantly higher than the year-ago quarter. The massive improvement was owing to Russia’s aggressive and unprovoked invasion of Ukraine.
The pricing environment of natural gas also improved dramatically in the first quarter from the year-ago period. Higher oil and natural prices are expected to have been favorable for BP’s upstream operations in the to-be-reported quarter.
The Zacks Consensus Estimate for BP’s replacement cost profit before interest and tax from oil production & operations is pegged at $4,523 million, reflecting a massive year-over-year improvement.
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 $1.41 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BP currently carries a Zacks Rank #3.
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:
EOG Resources is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for EOG’s quarterly earnings is pegged at $3.69 per share, suggesting an increase of 127.8% from the prior-year reported figure.
W&T Offshore, Inc. (WTI - Free Report) has an Earnings ESP of +10% and is a Zacks #3 Ranked player at present.
W&T Offshore is scheduled to release first-quarter results on May 3. The Zacks Consensus Estimate for WTI’s quarterly earnings is pegged at 20 cents per share, suggesting an increase of 81.8% from the prior-year figure.
Callon Petroleum Company has an Earnings ESP of +0.11% and it currently carries a Zacks Rank of 2.
Callon is scheduled to report the first-quarter results on May 4. The Zacks Consensus Estimate for CPE’s earnings is pegged at $3.28 per unit, suggesting a massive increase from the prior-year reported figure.
Image: Bigstock
Factors You Must Pay Attention to Ahead of BP's Q1 Earnings
BP plc (BP - Free Report) is set to report first-quarter 2022 results on May 3, before the opening bell.
In the last reported quarter, the British energy giant reported adjusted earnings of $1.23 per American Depositary Share (“ADS”) on a replacement cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.18 per share, owing to higher commodity price realizations and stronger refining business.
BP beat the Zack Consensus Estimate for the bottom line in the prior four quarters, with an average earnings surprise of 30.6%. 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.
Estimate Trend
The Zacks Consensus Estimate for first-quarter earnings per share of $1.41 has witnessed three upward movements and no downward revision in the past 30 days. The estimated figure suggests an improvement of 83% from the prior-year reported number.
The consensus estimate for first-quarter revenues of $53.1 billion indicates a 45.6% increase from the year-ago reported figure.
Factors to Consider
In the March-end quarter of 2022, the West Texas Intermediate crude price was significantly higher than the year-ago quarter. The massive improvement was owing to Russia’s aggressive and unprovoked invasion of Ukraine.
The pricing environment of natural gas also improved dramatically in the first quarter from the year-ago period. Higher oil and natural prices are expected to have been favorable for BP’s upstream operations in the to-be-reported quarter.
The Zacks Consensus Estimate for BP’s replacement cost profit before interest and tax from oil production & operations is pegged at $4,523 million, reflecting a massive year-over-year improvement.
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 $1.41 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BP currently carries a Zacks Rank #3.
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:
EOG Resources (EOG - Free Report) has an Earnings ESP of +0.89% and is a Zacks #1 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for EOG’s quarterly earnings is pegged at $3.69 per share, suggesting an increase of 127.8% from the prior-year reported figure.
W&T Offshore, Inc. (WTI - Free Report) has an Earnings ESP of +10% and is a Zacks #3 Ranked player at present.
W&T Offshore is scheduled to release first-quarter results on May 3. The Zacks Consensus Estimate for WTI’s quarterly earnings is pegged at 20 cents per share, suggesting an increase of 81.8% from the prior-year figure.
Callon Petroleum Company has an Earnings ESP of +0.11% and it currently carries a Zacks Rank of 2.
Callon is scheduled to report the first-quarter results on May 4. The Zacks Consensus Estimate for CPE’s earnings is pegged at $3.28 per unit, suggesting a massive increase from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.