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Let’s see how things are shaping up for the upcoming quarterly release.
Why a Likely Positive Surprise?
Our proven model shows that Hess is likely to beat earnings estimates because it has the right combination of two key ingredients.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +61.91%. This is a very meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Hess carries a Zacks Rank #2 (Buy), which when combined with +61.91% ESP, makes us confident about an earnings beat.
Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What’s Driving the Better-Than-Expected Performance?
Commodity Prices Likely to Rise
The Zacks Consensus Estimate for average worldwide realized price of oil (including hedging) is pegged at $63 per barrel, up from $46.97 in the year-ago quarter.
The consensus estimate calls for average worldwide realized natural gas price to rise to $4.44 per thousand cubic feet (Mcf) from the last reported quarter’s $4.12 and the year-ago figure of $3.35.
The Zacks Consensus Estimate for average worldwide realized natural gas liquids price is expected to rise to $22.44 per barrel from the second quarter’s $20.51 and the year-ago level of $17.22.
Rising Production from Bakken
Per the Zacks Consensus Estimate, Bakken crude oil production per day is projected at 77 thousand barrels per day (MBPD), which shows a rise from 63 MBPD in the year-ago quarter. The Zacks Consensus Estimate for natural gas production per day stands at 71 thousand cubic feet (Mcf), higher than year-ago level of 63 Mcf. The same for natural gas liquids production per day is pegged at 31.24 MBPD, higher than year-ago period’s 29 MBPD. The prolific Bakken Shale is one of the best producing shale plays in the North America. Production cost from the company’s properties in Bakken is one of the lowest in the region. Hence, the rising output from the Bakken region, along with the rising commodity prices, is expected to boost Hess’ third quarter results.
Other Stocks to Consider
Here are some other companies from the energy sector, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:
Woodlands, TX-based Summit Midstream Partners, LP (SMLP - Free Report) holds a Zacks Rank #1 and has an Earnings ESP of +64.00%. The company is scheduled to report third-quarter earnings on Nov 7.
Houston, TX-based Penn Virginia Corporation has a Zacks Rank #2 and an Earnings ESP of +6.38%. The company will report third-quarter earnings on Nov 14.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Hess (HES) to Report Q3 Earnings: Is a Beat in the Cards?
Hess Corporation (HES - Free Report) is expected to report third-quarter 2018 results on Oct 31, before the opening bell.
The company beat estimates in three of the trailing four reported quarters, delivering an average positive earnings surprise of 19.7%.
Hess Corporation Price and EPS Surprise
Hess Corporation Price and EPS Surprise | Hess Corporation Quote
Let’s see how things are shaping up for the upcoming quarterly release.
Why a Likely Positive Surprise?
Our proven model shows that Hess is likely to beat earnings estimates because it has the right combination of two key ingredients.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +61.91%. This is a very meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Hess carries a Zacks Rank #2 (Buy), which when combined with +61.91% ESP, makes us confident about an earnings beat.
Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What’s Driving the Better-Than-Expected Performance?
Commodity Prices Likely to Rise
The Zacks Consensus Estimate for average worldwide realized price of oil (including hedging) is pegged at $63 per barrel, up from $46.97 in the year-ago quarter.
The consensus estimate calls for average worldwide realized natural gas price to rise to $4.44 per thousand cubic feet (Mcf) from the last reported quarter’s $4.12 and the year-ago figure of $3.35.
The Zacks Consensus Estimate for average worldwide realized natural gas liquids price is expected to rise to $22.44 per barrel from the second quarter’s $20.51 and the year-ago level of $17.22.
Rising Production from Bakken
Per the Zacks Consensus Estimate, Bakken crude oil production per day is projected at 77 thousand barrels per day (MBPD), which shows a rise from 63 MBPD in the year-ago quarter. The Zacks Consensus Estimate for natural gas production per day stands at 71 thousand cubic feet (Mcf), higher than year-ago level of 63 Mcf. The same for natural gas liquids production per day is pegged at 31.24 MBPD, higher than year-ago period’s 29 MBPD. The prolific Bakken Shale is one of the best producing shale plays in the North America. Production cost from the company’s properties in Bakken is one of the lowest in the region. Hence, the rising output from the Bakken region, along with the rising commodity prices, is expected to boost Hess’ third quarter results.
Other Stocks to Consider
Here are some other companies from the energy sector, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:
Calgary, Canada-based Enbridge Inc. (ENB - Free Report) carries a Zacks Rank #1 and has an Earnings ESP of +5.26%. The company is anticipated to report quarterly results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Woodlands, TX-based Summit Midstream Partners, LP (SMLP - Free Report) holds a Zacks Rank #1 and has an Earnings ESP of +64.00%. The company is scheduled to report third-quarter earnings on Nov 7.
Houston, TX-based Penn Virginia Corporation has a Zacks Rank #2 and an Earnings ESP of +6.38%. The company will report third-quarter earnings on Nov 14.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>