APA to Report Q3 Earnings: Here's What to Expect
APA Corporation APA is set to release third-quarter results on Nov 1. The bottom-line estimate for the to-be-reported quarter is pegged at a profit of $1.09 per share on revenues of $2 billion.
Let’s delve into the factors that might have influenced this upstream operator’s results in the quarter. However, it’s worth taking a look at APA’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the independent oil and gas explorer met the consensus mark on lower operating expenses and strong production. APA had reported adjusted earnings per share of 85 cents, which beat the Zacks Consensus Estimate of 66 cents. Revenues of $2 billion also beat the Zacks Consensus Estimate by 7.6%.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 13.9%.
This is depicted in the graph below.
APA Corporation Price and EPS Surprise
APA Corporation price-eps-surprise | APA Corporation Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings has remained unchanged in the past seven days. The estimated figure indicates a 44.7% decline year over year. The Zacks Consensus Estimate for revenues indicates a 30.1% year-over-year deterioration.
Factors to Consider
APA is expected to have reaped the benefits of slightly higher oil production during the quarter. It continues to churn out an impressive output from its assets in the United States, Egypt and the North Sea. According to our model, the company’s average daily production is likely to have reached 202.9 thousand barrels in the third quarter, up 13.6% from the year-ago period’s level.
The reduction in APA's costs is also likely to have boosted its bottom line. The company’s total expenses are likely to have reached $1.5 billion in the third quarter, down 11.6% from the year-ago period’s level. Moreover, its cost of purchased oil and gas is expected to have decreased from $573 million to $261 million during the same time frame.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for APA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
APA has an Earnings ESP of +1.58% and a Zacks Rank #1.
Other Stocks to Consider
Here are some other firms from the oil and energy industry that you may want to consider as these too have the right combination of elements to post an earnings beat this reporting cycle.
Riley Exploration Permian, Inc. REPX has an Earnings ESP of +18.95% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The firm is scheduled to release earnings on Nov 7.
Riley Exploration has a trailing four-quarter average earnings surprise of 4.7%. Valued at around 634.4 million, REPX’s shares have risen 12.7% in a year.
PBF Energy Inc. PBF has an Earnings ESP of +7.63% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 2.
PBF Energy has a trailing four-quarter average earnings surprise of 8.3%. Valued at around $5.8 billion, PBF has gained 2.7% in a year.
Murphy USA Inc. MUSA has an Earnings ESP of +0.57% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 1.
Murphy USA has a trailing four-quarter average earnings surprise of 5.1%. Valued at around $7.6 billion, MUSA has gained 24.7% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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APA Corporation (APA) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
Riley Exploration Permian, Inc. (REPX) : Free Stock Analysis Report
