Talos Energy (TALO) to Report Q3 Earnings: What's in Store?
Talos Energy Inc. TALO is set to report third-quarter 2022 results on Nov 2, after the closing bell.
In the last reported quarter, the leading integrated energy company’s earnings per share of $1.20 per share missed the Zacks Consensus Estimate of earnings of $1.31 per share.
In the trailing four quarters, Talos Energy’s bottom line beat the Zacks Consensus Estimate twice and missed the same twice, the average surprise being 13.9%.
Let’s see how things have shaped up prior to this announcement.
Estimate Trend
The Zacks Consensus Estimate for Talos Energy’s third-quarter earnings per share of 32 cents has witnessed no upward and downward movement in the past 30 days. The estimate suggests a massive increase from the prior-year quarter’s loss of 4 cents per share.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $325 million indicates an 11.7% year-over-year improvement.
Factors to Note
Oil prices were significantly higher in the September-end quarter of 2022, above the pre-pandemic levels. Higher oil prices are likely to have been favorable for Talos Energy as it is one of the largest independent producers in the Gulf of Mexico.
However, the Zacks Consensus Estimate for the company’s average daily production volumes for the third quarter is pegged at 52 thousand barrels of oil equivalent per day (MBoe/d), suggesting a decline from 56.5 MBoe/d reported in the year-ago quarter.
Also, the Zacks Consensus Estimate for the company’s average daily oil production volumes for the third quarter is pegged at 32.5 thousand barrels of oil per day (MBbl/d), suggesting a decline from 39.2 MBbl/d reported in the year-ago quarter.
Lower production is likely to have affected the exploration and production company’s third-quarter performance.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Talos Energy 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.
Earnings ESP: The company has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 32 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Talos Energy currently carries a Zacks Rank #2.
Stocks to Consider
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:
Cactus, Inc. WHD has an Earnings ESP of +2.74% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cactus is scheduled to release third-quarter earnings on Nov 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 49 cents per share, suggesting an increase of 157.9% from the prior-year quarter’s reported figure.
Chesapeake Energy Corporation CHK has an Earnings ESP of +0.42% and is a Zacks #2 Ranked player at present.
Chesapeake Energy is scheduled to release third-quarter earnings on Nov 1. The Zacks Consensus Estimate for CHK’s quarterly earnings is pegged at $4.48 per share, suggesting an increase of 88.2% from the prior-year reported figure.
Diamondback Energy FANG has an Earnings ESP of +0.63% and a Zacks Rank of 3.
Diamondback Energy is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s quarterly earnings is pegged at $6.45 per share, suggesting an increase of 119.4% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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