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WPX Energy (WPX) to Report Q3 Earnings: What's in Store?

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We expect WPX Energy, Inc. to beat estimates when it reports third-quarter 2018 results on Oct 31, after market close. In the last reported quarter, the company delivered a positive surprise of 200.0%.

What Does the Zacks Model Unveil?

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.

Earnings ESP: The company’s Earnings ESP is +2.13%. 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

WPX Energy, Inc. Price and EPS Surprise

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

Zacks Rank: WPX Energy currently carries a Zacks Rank #2. 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.

Factors to Consider

WPX Energy is experiencing continuous improvement in production from its high-quality assets in Delaware and Williston Basin. Focus on increasing oil production is boosting the prospects of the company, given the ongoing improvement in commodity prices.

The strategic transformation of WPX Energy via selling off its non-core assets and lowering long-term debts is going to have a positive impact on results. The company is expanding midstream operation in the Permian Basin, which will likely boost its performance.

Other Stocks to Consider

WPX Energy is not the only company in the industry that is looking up this earnings season. We expect an earnings beat from the following companies as well.

Apache Corporation (APA - Free Report) has an Earnings ESP of +4.85% and carries a Zacks Rank #2. It is slated to report third-quarter 2018 results on Oct 31. You can see the complete list of today’s Zacks #1 Rank stocks here.

Anadarko Petroleum Corporation has an Earnings ESP of +2.19% and a Zacks Rank #2. It is scheduled to report third-quarter 2018 results on Oct 30.

Concho Resources Inc. has an Earnings ESP of +3.49% and carries a Zacks Rank #2. It is slated to report third-quarter 2018 results on Oct 30.

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