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Is a Beat in Store for ConocoPhillips (COP) in Q2 Earnings?

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ConocoPhillips (COP - Free Report) is set to report second-quarter 2022 results on Aug 4, before the opening bell.

In the last reported quarter, the upstream energy company’s adjusted earnings per share of $3.27 beat the Zacks Consensus Estimate of $3.24, owing to increased oil-equivalent production volumes and realized commodity prices.

ConocoPhillips beat the Zacks Consensus Estimate for the bottom line in the trailing four quarters, delivering an earnings surprise of 7.6%, on average. This is depicted in the graph below:

ConocoPhillips Price and EPS Surprise

 

ConocoPhillips Price and EPS Surprise

ConocoPhillips price-eps-surprise | ConocoPhillips Quote

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for the company’s second-quarter earnings per share of $3.78 has witnessed two upward revisions and three downward movements in the past 30 days. This suggests a year-over-year improvement of 197.6%.

The Zacks Consensus Estimate for COP’s revenues for the June-end quarter is pegged at $17.9 billion, implying a year-over-year increase of 75.5%.

Earnings Whispers

Our proven model conclusively predicts an earnings beat for ConocoPhillips this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. As you can see, that is the case here.

Earnings ESP: ConocoPhillips has an Earnings ESP of +1.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: COP currently carries a Zacks Rank #3.

Factors to Note

In the June-end quarter of 2022, crude oil and natural prices were significantly higher than the prior-year quarter. The sharp rise in oil price can be linked to the assumptions by many analysts that the Ukraine war may be prolonged. Healthier commodity prices are likely to have aided ConocoPhillips’ bottom line in the to-be-reported quarter since it is a leading exploration and production company globally.

As a reflection of the price boost, the Zacks Consensus Estimate for the second-quarter average realized crude oil price is pegged at $102 per barrel, indicating a significant rise from a year earlier when the company recorded $66. Also, the Zacks Consensus Estimate for ConocoPhillips’ daily crude oil production is pegged at 930 thousand barrels per day (MBbl/d), suggesting an improvement from 849 MBbl/d reported in the year-ago quarter.

Hence, higher commodity prices and crude production are likely to have aided ConocoPhillips’ earnings in the second quarter.

Other Stocks That Warrant a Look

Here are some other companies from the Energy space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Sunoco LP (SUN - Free Report) currently has an Earnings ESP of +16.67% and a Zacks Rank of 3.

Sunoco is scheduled to report second-quarter results on Aug 3. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.14 per share, suggesting a decline from the prior-year reported figure.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Marathon Oil Corporation (MRO - Free Report) has an Earnings ESP of +2.27% and is a Zacks #3 Ranked player at present.

Marathon Oil is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for MRO’s quarterly earnings is pegged at $1.23 per share, suggesting a massive improvement from the prior-year figure.

Enterprise Products Partners L.P. (EPD - Free Report) has an Earnings ESP of +1.76% and a Zacks Rank of 2 at present.

Enterprise Products is scheduled to report second-quarter results on Aug 3. The Zacks Consensus Estimate for EPD’s earnings is pegged at 63 cents per share, suggesting a significant increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.