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Is a Beat in the Cards for Equinor (EQNR) in Q3 Earnings?

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Equinor ASA (EQNR - Free Report) is set to report third-quarter 2022 earnings on Oct 28.  

The integrated energy company reported second-quarter adjusted earnings per share of $1.56, beating the Zacks Consensus Estimate of $1.44 on higher commodity prices and increased contributions from the Martin Linge oil field.

In the trailing four quarters, Equinor beat the Zacks Consensus Estimate for the bottom line, delivering an earnings surprise of 7.3%, on average. This is depicted in the graph below:

Equinor ASA Price and EPS Surprise

Equinor ASA Price and EPS Surprise

Equinor ASA price-eps-surprise | Equinor ASA Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of $1.78 has witnessed one upward revision and no downward movement over the past 30 days. The estimated figure suggests a massive improvement from the prior-year quarter’s reported figure.

Similarly, the consensus estimate for third-quarter revenues of $57.7 billion indicates a 147.9% increase from the year-ago quarter’s reported figure.

What the Quantitative Model Suggests

Our proven model predicts an earnings beat for Equinor 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, which is exactly the case here.

Earnings ESP: Equinor has an Earnings ESP of +25.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Equinor currently sports a Zacks Rank #1.

Factors Driving Better-Than-Expected Earnings

Per data provided by the U.S. Energy Information Administration (“EIA”), the average Europe brent crude spot prices in July, August and September were recorded at $111.93 per barrel, $100.45 per barrel and $89.76 per barrel, respectively. In comparison, in the year-ago respective months, average oil prices were reported at $75.17 per barrel, $70.75 per barrel and $74.49 per barrel, per the EIA’s data. The pricing scenario of natural gas was also healthy, depicting that the upstream business of Equinor was lucrative in the third quarter.

Our estimate for EQNR’s net operating income from exploration and production in Norway is pegged at $15,999.5 million, signifying a significant year-over-year increase.

Other Stocks to Consider

Here are some other firms worth considering, as these, too, have the right combination of elements to beat on earnings in the upcoming quarterly reports:

Viper Energy Partners LP (VNOM - Free Report) has an Earnings ESP of +20.24% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Viper Energy is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting an increase of 90.5% from the prior-year quarter’s reported figure.

Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank of 3.

Diamondback is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.47 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

EQT Corporation (EQT - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank #2.

EQT Corporation is scheduled to release third-quarter earnings on Oct 26. The Zacks Consensus Estimate for EQT’s earnings is pegged at $1.05 per share, suggesting a massive increase from the prior-year quarter’s reported figure.

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

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