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Is a Beat in Store for WPX Energy (WPX) in Q2 Earnings?

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We expect WPX Energy, Inc. to beat estimates when it reports second-quarter 2017 results on Aug 2, after market close. Last quarter, this company delivered a positive surprise of 11.76%.

Why a Likely Positive Surprise?

Our proven model shows that WPX Energy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.

Zacks ESP: The company’s Earnings ESP, which represents the difference between the Most Accurate estimate of a loss of 15 cents and the Zacks Consensus Estimate of a loss of 16 cents, is +6.25%. This is a meaningful and leading indicator of a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: WPX Energy currently carries a Zacks Rank #3. The combination of WPX Energy’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.

Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. Price and EPS Surprise | WPX Energy, Inc. Quote

Factors to Consider

The ongoing recovery in the price of crude oil will dent the performance of WPX Energy given its focus on increasing oil production. The exposure of Delaware, Williston and San Juan basins will improve the company’s oil production volumes compared with year-ago period.

During the first quarter, WPX Energy completed two acquisitions in the Delaware Basin. These acquired assets are also expected to be accretive to the results of the quarter under review.

Other Stocks to Consider

WPX Energy is not the only company in the Industry that is looking up this earnings season. We can expect earnings beat coming from these companies as well.

Cheniere Energy, Inc. (LNG - Free Report) has an Earnings ESP of +2,200.00% and carries a Zacks Rank #3. It is slated to report second-quarter 2017 results on Aug 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

Goodrich Petroleum Corporation has an Earnings ESP of +3.23% and carries a Zacks Rank #3. It is slated to report second-quarter 2017 results on Aug 4.

Rice Energy Inc. has an Earnings ESP of +9.09% and carries a Zacks Rank #3. It is slated to report second-quarter 2017 results on Aug 2.

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