The second quarter brought back hopes for oil that fell to its 12-year low of $26.21 in February. Subsequently, supply outages round the globe pushed up the price of the commodity by almost 90%, taking the commodity past the $50 per barrel mark. However per the Earnings Preview report, the general outlook for energy sector remains bearish as it is expected to register a massive 77.3% year-over-year decline in earnings due to a 26% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness a marginal fall in earnings of 0.1%.
The second-quarter earnings season is now well past the half-way mark, with 317 S&P 500 members (as of Jul 29) having reported their results already. As we evaluate the results of these companies, we notice slight sequential growth. Yet, the benchmark S&P 500 index is likely to end up with a sequential decline. Also eight of the 16 Zacks sectors (as of Jul 29) are projected to underperform.
Total earnings for these 317 companies are down 3.3% year over year on 0.9% lower revenues. Of these, 72.9% beat earnings per share (EPS) estimates and 53.6% surpassed top-line expectations. The earnings of the companies that have reported from the energy sector so far are down 76.5% year over year due to 24.6% lower revenues.
Let’s take a look at how some of the energy companies are poised ahead of the scheduled second-quarter earnings releases on Aug 3.
Cimarex Energy Co. has an Earnings ESP of +200.00% and a Zacks Rank #2 (Buy). This is a meaningful indicator of a likely positive earnings surprise.
Last quarter, the company delivered a negative surprise of 5.26% owing to the challenges associated with a steep drop in oil price. Also, the company missed the Zacks Consensus Estimate in three of the past four quarters. However, Cimarex managed an average beat of 38.93%. (Read more: Will Cimarex Beat Estimates this Earnings Season?)
Continental Resources, Inc. has an Earnings ESP of +5.56% and Zacks Rank #2. This is a leading indicator of a likely positive earnings surprise.
Last quarter, the company reported loss of 41 cents per share, wider than the Zacks Consensus Estimate of 35 cents loss. This had resulted in an earnings surprise of -17.14%. Moreover, the company missed the Zacks Consensus Estimate in two of the last four quarters.
Eclipse Resources Corporation has an Earnings ESP of 0.00% and Zacks Rank #2. Though a favorable Zacks Rank increases the predictive power of ESP, an ESP of 0.00% makes surprise prediction difficult.
Last quarter, the company reported loss of 18 cents per share, in line with the Zacks Consensus Estimate. This had resulted in an earnings surprise of 0.00%. Also, the company missed the Zacks Consensus Estimate in three of the last four quarters.
Laredo Petroleum, Inc. has an Earnings ESP of 0.00% and Zacks Rank #2. We are thus unable to predict an earnings beat of Laredo Petroleum.
Last quarter, the company reported earnings of 8 cents per share, beating the Zacks Consensus Estimate of 5 cents. This had resulted in a positive earnings surprise of 60.00%. Also, the company missed the Zacks Consensus Estimate in only one of the last four quarters.
EP Energy Corporation has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). Despite the favorable Zacks rank, the 0.00% ESP makes surprise prediction difficult.
Last quarter, the company had reported earnings of 19 cents per share, beating the Zacks Consensus Estimate of break-even.
Don’t miss out on our full earnings release articles for these oil stocks, as the actual results might hold some surprises!
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Oil Stocks Q2 Earnings Queued Up for Aug 3: XEC, CLR & More
The second quarter brought back hopes for oil that fell to its 12-year low of $26.21 in February. Subsequently, supply outages round the globe pushed up the price of the commodity by almost 90%, taking the commodity past the $50 per barrel mark. However per the Earnings Preview report, the general outlook for energy sector remains bearish as it is expected to register a massive 77.3% year-over-year decline in earnings due to a 26% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness a marginal fall in earnings of 0.1%.
The second-quarter earnings season is now well past the half-way mark, with 317 S&P 500 members (as of Jul 29) having reported their results already. As we evaluate the results of these companies, we notice slight sequential growth. Yet, the benchmark S&P 500 index is likely to end up with a sequential decline. Also eight of the 16 Zacks sectors (as of Jul 29) are projected to underperform.
Total earnings for these 317 companies are down 3.3% year over year on 0.9% lower revenues. Of these, 72.9% beat earnings per share (EPS) estimates and 53.6% surpassed top-line expectations. The earnings of the companies that have reported from the energy sector so far are down 76.5% year over year due to 24.6% lower revenues.
Let’s take a look at how some of the energy companies are poised ahead of the scheduled second-quarter earnings releases on Aug 3.
Cimarex Energy Co. has an Earnings ESP of +200.00% and a Zacks Rank #2 (Buy). This is a meaningful indicator of a likely positive earnings surprise.
Last quarter, the company delivered a negative surprise of 5.26% owing to the challenges associated with a steep drop in oil price. Also, the company missed the Zacks Consensus Estimate in three of the past four quarters. However, Cimarex managed an average beat of 38.93%. (Read more: Will Cimarex Beat Estimates this Earnings Season?)
CIMAREX ENERGY Price and EPS Surprise
CIMAREX ENERGY Price and EPS Surprise | CIMAREX ENERGY Quote
Continental Resources, Inc. has an Earnings ESP of +5.56% and Zacks Rank #2. This is a leading indicator of a likely positive earnings surprise.
Last quarter, the company reported loss of 41 cents per share, wider than the Zacks Consensus Estimate of 35 cents loss. This had resulted in an earnings surprise of -17.14%. Moreover, the company missed the Zacks Consensus Estimate in two of the last four quarters.
CONTL RESOURCES Price and EPS Surprise
CONTL RESOURCES Price and EPS Surprise | CONTL RESOURCES Quote
Eclipse Resources Corporation has an Earnings ESP of 0.00% and Zacks Rank #2. Though a favorable Zacks Rank increases the predictive power of ESP, an ESP of 0.00% makes surprise prediction difficult.
Last quarter, the company reported loss of 18 cents per share, in line with the Zacks Consensus Estimate. This had resulted in an earnings surprise of 0.00%. Also, the company missed the Zacks Consensus Estimate in three of the last four quarters.
ECLIPSE RESRCS Price and EPS Surprise
ECLIPSE RESRCS Price and EPS Surprise | ECLIPSE RESRCS Quote
Laredo Petroleum, Inc. has an Earnings ESP of 0.00% and Zacks Rank #2. We are thus unable to predict an earnings beat of Laredo Petroleum.
Last quarter, the company reported earnings of 8 cents per share, beating the Zacks Consensus Estimate of 5 cents. This had resulted in a positive earnings surprise of 60.00%. Also, the company missed the Zacks Consensus Estimate in only one of the last four quarters.
LAREDO PETROLM Price and EPS Surprise
LAREDO PETROLM Price and EPS Surprise | LAREDO PETROLM Quote
EP Energy Corporation has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). Despite the favorable Zacks rank, the 0.00% ESP makes surprise prediction difficult.
Last quarter, the company had reported earnings of 19 cents per share, beating the Zacks Consensus Estimate of break-even.
EP ENERGY CP-A Price and EPS Surprise
EP ENERGY CP-A Price and EPS Surprise | EP ENERGY CP-A Quote
Don’t miss out on our full earnings release articles for these oil stocks, as the actual results might hold some surprises!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>