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Factors Likely to Determine the Fate of BP in Q4 Earnings
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BP plc (BP - Free Report) is set to report fourth-quarter 2023 earnings on Feb 6.
In the last reported quarter, the company’s earnings of $1.15 per share missed the Zacks Consensus Estimate of $1.37 due to lower realizations of commodity prices and a decline in refinery throughputs. BP’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat the same once, delivering an average negative surprise of 4.7%. This is depicted in the graph below.
The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.09 has witnessed two downward revisions over the past 30 days. The estimated figure suggests a significant decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for fourth-quarter revenues of $59.5 billion indicates a 15.4% decline from the year-ago reported figure.
Factors to Consider
Per data provided by the U.S. Energy Information Administration, the average spot West Texas Intermediate crude prices per barrel in October, November and December were $85.64, $77.69 and $71.90, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices, higher than the $70 per barrel mark, were impressive and healthy.
Like oil, natural gas prices in the December quarter were also lower year over year.
On the production front, BP expects its upstream production in the fourth quarter to be almost in line sequentially. Thus, lower commodity prices amid flat production are likely to have hurt its bottom line to some extent.
Earnings Whispers
Our proven model does not indicate 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 the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: BP’s Earnings ESP is -10.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
The partnership is scheduled to release fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for WES’s earnings is pegged at 78 cents per share, suggesting a decline from the year-ago figure.
Exxon Mobil Corporation (XOM - Free Report) currently has an Earnings ESP of +0.47% and a Zacks Rank #3.
ExxonMobil is scheduled to release fourth-quarter earnings on Feb 2. The Zacks Consensus Estimate for XOM’s earnings is pegged at $2.21 per share.
Oceaneering International Inc (OII - Free Report) has an Earnings ESP of +5.88% and is a Zacks #1 Ranked player at present.
OII is scheduled to release fourth-quarter results on Feb 22. The Zacks Consensus Estimate for Oceaneering International’s earnings is pegged at 23 cents per share, suggesting a massive year-over-year improvement.
Image: Bigstock
Factors Likely to Determine the Fate of BP in Q4 Earnings
BP plc (BP - Free Report) is set to report fourth-quarter 2023 earnings on Feb 6.
In the last reported quarter, the company’s earnings of $1.15 per share missed the Zacks Consensus Estimate of $1.37 due to lower realizations of commodity prices and a decline in refinery throughputs. BP’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat the same once, delivering an average negative surprise of 4.7%. 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
Estimate Trend
The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.09 has witnessed two downward revisions over the past 30 days. The estimated figure suggests a significant decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for fourth-quarter revenues of $59.5 billion indicates a 15.4% decline from the year-ago reported figure.
Factors to Consider
Per data provided by the U.S. Energy Information Administration, the average spot West Texas Intermediate crude prices per barrel in October, November and December were $85.64, $77.69 and $71.90, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices, higher than the $70 per barrel mark, were impressive and healthy.
Like oil, natural gas prices in the December quarter were also lower year over year.
On the production front, BP expects its upstream production in the fourth quarter to be almost in line sequentially. Thus, lower commodity prices amid flat production are likely to have hurt its bottom line to some extent.
Earnings Whispers
Our proven model does not indicate 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 the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: BP’s Earnings ESP is -10.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Western Midstream Partners LP (WES - Free Report) currently has an Earnings ESP of +4.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The partnership is scheduled to release fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for WES’s earnings is pegged at 78 cents per share, suggesting a decline from the year-ago figure.
Exxon Mobil Corporation (XOM - Free Report) currently has an Earnings ESP of +0.47% and a Zacks Rank #3.
ExxonMobil is scheduled to release fourth-quarter earnings on Feb 2. The Zacks Consensus Estimate for XOM’s earnings is pegged at $2.21 per share.
Oceaneering International Inc (OII - Free Report) has an Earnings ESP of +5.88% and is a Zacks #1 Ranked player at present.
OII is scheduled to release fourth-quarter results on Feb 22. The Zacks Consensus Estimate for Oceaneering International’s earnings is pegged at 23 cents per share, suggesting a massive year-over-year improvement.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.