Is a Beat in Store for Helmerich & Payne (HP) in Q1 Earnings?
Helmerich & Payne, Inc. HP is set to release fiscal first-quarter 2023 results on Jan 30. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 81 cents per share on revenues of $689.3 million.
Let’s delve into the factors that might have influenced the oil and gas drilling rig provider’s performance in the December quarter. But it’s worth taking a look at HP’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, this Tulsa, OK-based land and offshore contractor met the consensus mark on strengthening energy activity. Helmerich & Payne had reported adjusted earnings per share of 45 cents, in line with the Zacks Consensus Estimate. Revenues of $631.3 million outperformed the Zacks Consensus Estimate of $597 million.
HP beat the Zacks Consensus Estimate for earnings in three of the last four quarters, resulting in an earnings surprise of 124.2%, on average. This is depicted in the graph below:
Helmerich & Payne, Inc. Price and EPS Surprise
Helmerich & Payne, Inc. price-eps-surprise | Helmerich & Payne, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal first-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 280% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 68.2% increase from the year-ago period.
Factors to Consider
In the fiscal fourth quarter of 2022, the company’s North America Solutions segment generated revenues of $552.3 million, up 88.3% year over year. The positive momentum is most likely to have continued in the fiscal first quarter, thanks to HP’s impressive scale, technology and further growth in the region’s drilling activity. Considering the improved operating environment, the Zacks Consensus Estimate for fiscal first-quarter revenues of North America Solutions is pegged at $606 million, indicating a significant increase from the prior-year quarter’s level of $341 million.
HP is also expected to have benefited from the powerful performance of its International Solutions unit. The company’s fiscal fourth-quarter segment revenues increased to $42.4 million from $17.3 million in the corresponding three-month period of fiscal 2021. With more drilling work in South America, the favorable revenue story is likely to have continued in the to-be-reported quarter. As a reflection of this, the consensus mark for fiscal first-quarter International Solutions revenues stands at $46.4 million compared to $37.2 million in the fiscal first quarter of 2022.
Why a Likely Positive Surprise?
Our proven model predicts a likely earnings beat for Helmerich & Payne this season. 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.
HP has an Earnings ESP of +8.68% and a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Helmerich & Payne is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Patterson-UTI Energy PTEN has an Earnings ESP of +5.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 8.
Patterson-UTI Energy topped the Zacks Consensus Estimate by an average of 169.2% in the trailing four quarters, including a 47.4% beat in the last reported quarter. Valued at around $3.5 billion, PTEN has gained 57.4% in a year.
Exxon Mobil Corporation XOM has an Earnings ESP of +5.09% and a Zacks Rank #3. The firm is scheduled to release earnings on Jan 31.
ExxonMobil beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of 5.1%, on average. Valued at around $464.4 billion, XOM has gained 51.9% in a year.
Enterprise Products Partners L.P. EPD has an Earnings ESP of +3.07% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 1.
For 2022, Enterprise Products Partners has a projected earnings growth rate of 18.1%. Valued at around $56.8 billion, EPD has gained 8.8% in a year.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
PattersonUTI Energy, Inc. (PTEN) : Free Stock Analysis Report
Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
