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Is a Beat in Store for Helmerich & Payne (HP) in Q4 Earnings?

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Helmerich & Payne, Inc. (HP - Free Report) is set to release fiscal fourth-quarter 2022 results on Nov 17. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 43 cents per share on revenues of $591.4 million.

Let’s delve into the factors that might have influenced the oil and gas drilling rig provider’s performance in the September quarter. But it’s worth taking a look at HP’s previous-quarter performance first.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, this Tulsa, OK-based land and offshore contractor smashed the consensus mark on strengthening energy activity. Helmerich & Payne had reported adjusted earnings per share of 27 cents, well ahead of the Zacks Consensus Estimate of 5 cents. Revenues of $550.2 million also outperformed the Zacks Consensus Estimate of $513 million.

HP beat the Zacks Consensus Estimate for earnings in three of the last four quarters, resulting in an earnings surprise of 118.2%, on average. This is depicted in the graph below:

Trend in Estimate Revision

The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 169.4% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 72% increase from the year-ago period.

Factors to Consider

In the fiscal third quarter of 2022, the company’s North America Solutions segment generated revenues of $486 million, up 72.9% year over year. The positive momentum is most likely to have continued in the fiscal fourth quarter, thanks to HP’s impressive scale, technology and further growth in the region’s drilling activity. Considering the improved operating environment, the Zacks Consensus Estimate for the fiscal fourth-quarter revenues of North America Solutions is pegged at $509 million, indicating a significant increase from the previous prior-year quarter’s level of $293.3 million.

HP is also expected to have benefited from the powerful performance by its International Solutions unit. The company’s fiscal third-quarter segment revenues increased to $29.1 million from $15.3 million in the corresponding three-month period of 2021. With more drilling work in South America, the favorable revenue story is likely to have continued in the to-be-reported quarter. As a reflection of this, the consensus mark for fiscal fourth-quarter International Solutions revenues stands at $35.7 million, more than double that of the fiscal fourth quarter of 2021.

Why a Likely Positive Surprise?

Our proven model predicts a likely earnings beat for Helmerich & Payne this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

HP has an Earnings ESP of +15.10% and a Zacks Rank #1.

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

Other Stocks to Consider

Helmerich & Payne is not the only company looking up this earnings cycle. Here are some other firms that you may want to consider on the basis of our model:

Caleres, Inc. (CAL - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov 22.

Caleres beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 34.9%, on average. Valued at around $968.9 million, CAL has edged up 0.2% in a year.

Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +8.48% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov 22.

Burlington Stores topped the Zacks Consensus Estimate by an average of5.6% in the trailing four quarters, including a 52.2% beat in the last reported quarter. Valued at around $10.1 billion, BURL has lost 42.9% in a year.

Intuit Inc. (INTU - Free Report) has an Earnings ESP of +3.15% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov 29.

For fiscal 2023, Intuit has a projected earnings growth rate of 15.6%. Valued at around $112.1 billion, INTU has lost 37% in a year.

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

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