Is a Beat in Store for Hess Corporation (HES) in Q3 Earnings?
Hess Corporation HES is set to report third-quarter 2023 earnings on Oct 25, before the opening bell.
In the last reported quarter, the companyās earnings of 65 cents per share beat the Zacks Consensus Estimate of 57 cents, thanks to higher oil-equivalent production volumes. HESā earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.4%. This is depicted in the graph below:
Hess Corporation Price and EPS Surprise
Hess Corporation price-eps-surprise | Hess Corporation Quote
Estimate Trend
The Zacks Consensus Estimate for third-quarter earnings per share of $1.30 has witnessed six upward revisions over the past 30 days. The estimated figure suggests a significant decline from the year-ago reported number.
The Zacks Consensus Estimate for third-quarter revenues of $2.6 billion indicates a 19.1% decline from the year-ago reported figure.
Earnings Whispers
Our proven model predicts an earnings beat for Hess 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. That is just the case here.
Earnings ESP: Hess has an Earnings ESP of +11.44%. You can uncover the best stocks to buy or sell before theyāre reported with our Earnings ESP Filter.
Zacks Rank: HES currently carries a Zacks Rank #2.
Factors to Consider
The pricing scenario of oil and natural gas was impressive in the third quarter of this year. 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, the commodity prices were impressive and healthy.
Like oil, natural gas prices in the September quarter were healthier than in the second quarter, aiding the exploration and production activities of HES. We expect its oil equivalent daily production to increase 4.6% in the third quarter, aligning with the company's forecasts, thanks to its strong presence in prolific oil and gas resources. Thus, higher prices and production are likely to have aided HESā third-quarter earnings.
Other Stocks to Consider
Here are some other firms that you may want to consider, as these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Viper Energy Partners LP VNOM currently has an Earnings ESP of +28.07% and a Zacks Rank #2. You can see the complete list of todayās Zacks #1 Rank stocks here.
The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOMās earnings is pegged at 40 cents per share, suggesting a decline from the year-ago figure.
Antero Resources Corporation AR has an Earnings ESP of +91.67% and is currently a Zacks #3 Ranked player.
The company is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for ARās loss is pegged at 6 cents per share.
Valero Energy Corporation VLO has an Earnings ESP of +4.05% and is a Zacks #2 Ranked player at present.
Valero Energy is scheduled to release third-quarter results on Oct 26. The Zacks Consensus Estimate for VLOās earnings is pegged at $7.21 per share, suggesting a marginal year-over-year improvement.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Hess Corporation (HES) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
Antero Resources Corporation (AR) : Free Stock Analysis Report
Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
