Is a Beat in Store for ConocoPhillips (COP) in Q3 Earnings?
ConocoPhillips COP is set to report third-quarter 2023 results on Nov 2 before the opening bell.
In the last reported quarter, the upstream energy company’s adjusted earnings per share of $1.84 missed the Zacks Consensus Estimate of $1.94 due to lower average realized oil equivalent prices. Increasing production and operating expenses also affected the company’s performance.
In the trailing four quarters, ConocoPhillips beat the Zacks Consensus Estimate for earnings twice and missed the same twice, delivering an earnings surprise of 4.5%, on average. This is depicted in the graph below:
ConocoPhillips Price and EPS Surprise
ConocoPhillips price-eps-surprise | ConocoPhillips Quote
Let’s see how things have shaped up prior to the announcement.
Estimate Trend
The Zacks Consensus Estimate for ConocoPhillips’ third-quarter earnings per share of $2.04 has witnessed two upward revisions and five downward movements in the past 30 days. This suggests a 43.3% decline from the year-ago reported number.
The Zacks Consensus Estimate for COP’s revenues for the September-ended quarter is pegged at $14.6 billion. This implies a year-over-year decline of 32.5%.
Earnings Whispers
Our proven model conclusively predicts an earnings beat for ConocoPhillips this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. As you can see, that is the case here.
Earnings ESP: COP has an Earnings ESP of +0.50%. This is because the Most Accurate Estimate is pegged at $2.05 per share, whereas the Zacks Consensus Estimate is pinned at $2.04 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ConocoPhillips currently carries a Zacks Rank #2.
Factors to Note
The price scenario of oil and natural gas was impressive in the third quarter. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively.
Although the prices were not as high as in the year-ago quarter, commodity prices were impressive and healthy. ConocoPhillips is a leading oil and natural gas exploration and production company in the world. Hence, commodity prices play a primary role in determining the fate of the upstream player. This is likely to have aided COP’s bottom line in the third quarter.
The Zacks Consensus Estimate for ConocoPhillips’ daily total production is pegged at 1,800 thousand barrels of oil equivalent per day (MBoe/d), suggesting an improvement from the 1,754 MBoe/d reported in the year-ago quarter. Our estimate for the metric is 1,801.5 MBoe/d, implying a year-over-year increase. Higher production is likely to have aided COP’s performance in the third quarter.
Stocks That Warrant a Look
Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
EOG Resources, Inc. EOG currently has an Earnings ESP of +1.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.95 per share, suggesting a decline from the year-ago actual.
Cenovus Energy Inc. CVE presently has an Earnings ESP of +6.53% and a Zacks Rank #3.
The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for CVE’s earnings is pegged at 59 cents per share, suggesting a decline from the prior-year reported figure.
Devon Energy Corp. DVN has an Earnings ESP of +0.72% and is currently a Zacks #2 Ranked player.
The company is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for DVN’s earnings is pegged at $1.55 per share, suggesting a decline from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Devon Energy Corporation (DVN) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Cenovus Energy Inc (CVE) : Free Stock Analysis Report
