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Factors to Pay Attention to Ahead of BP's Q3 Earnings Release

BP plc BP is set to report third-quarter 2022 results on Nov 1.

In the last reported quarter, the leading integrated energy company surpassed the Zacks Consensus Estimate, thanks to higher production and realizations of commodity prices. It beat the consensus estimate in all the prior four quarters, the average earnings surprise being 15.6%. This is depicted in the graph below:

BP p.l.c. Price and EPS Surprise

BP p.l.c. Price and EPS Surprise
BP p.l.c. Price and EPS Surprise

BP p.l.c. price-eps-surprise | BP p.l.c. Quote

Let’s see how things have shaped up prior to this announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of $1.94 has witnessed three downward revisions over the past seven days. The estimated figure suggests an improvement of almost 96% from the prior-year reported number.

The consensus estimate for third-quarter revenues of $57.5 billion indicates a 51.7% increment from the year-ago reported figure.

Factors to Consider

Per data provided by the U.S. Energy Information Administration (“EIA”), the average West Texas Intermediate (“WTI”) crude prices in July, August and September were recorded at $101.62 per barrel, $93.67 per barrel and $84.26 per barrel, respectively. In comparison, in the year-ago respective months, average oil prices were reported at $72.49 per barrel, $67.73 per barrel and $71.65 per barrel, per the EIA’s data.

Higher WTI oil and Brent crude prices were favorable for the exploration and production activities of BP. Natural gas price was also healthier, thereby favoring BP’s upstream businesses. These are likely to have aided its third-quarter performance.

Earnings Whispers

Our proven model does not indicate an earnings beat for BP 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 not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is -2.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BP currently carries a Zacks Rank #3.

Stocks to Consider

While an earnings beat looks uncertain for BP, 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:

Viper Energy Partners LP VNOM has an Earnings ESP of +20.24% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Viper Energy is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting an increase of 90.5% from the prior-year quarter’s reported figure.

Diamondback Energy, Inc. FANG has an Earnings ESP of +0.67% and a Zacks Rank of 3.

Diamondback is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.46 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Enterprise Products Partners LP EPD has an Earnings ESP of +0.54% and a Zacks Rank #3.

Enterprise Products is scheduled to release third-quarter earnings on Nov 1. The Zacks Consensus Estimate for EPD’s earnings is pegged at 61 cents per share, suggesting an increase of 17.3% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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BP p.l.c. (BP) : Free Stock Analysis Report
 
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