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What's in Store for Continental Resources' (CLR) Q2 Earnings?

·4 min read

Continental Resources, Inc. CLR is set to report second-quarter 2022 earnings on Jul 28, after the closing bell.

In the last reported quarter, Continental Resources’ earnings per share of $2.65 beat the Zacks Consensus Estimate of $2.41, owing to higher oil-equivalent production volumes and commodity price realizations.

CLR’s earnings beat the Zacks Consensus Estimate thrice and missed once in the trailing four quarters, with the average surprise being 17.5%. This is depicted in the graph below:

Continental Resources, Inc. Price and EPS Surprise

Continental Resources, Inc. Price and EPS Surprise
Continental Resources, Inc. Price and EPS Surprise

Continental Resources, Inc. price-eps-surprise | Continental Resources, Inc. Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter earnings per share of $3.19 has witnessed four upward and no downward revisions over the past 30 days. The estimated figure suggests a 250.6% improvement from the prior-year reported number.

The consensus estimate for second-quarter revenues of $2.7 billion indicates a 115.7% increase from the year-ago reported figure.

Factors to Consider

The pricing scenario of West Texas Intermediate (WTI) crude was considerably higher in the second quarter of this year compared to the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for this year’s April, May and June were $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. The commodity prices were higher than last year’s prices of $61.72 per barrel, $65.17 per barrel and $71.38 per barrel, respectively. The significant crude price improvement was primarily supported by the invasion of Ukraine by Russia.

High oil price was favorable for exploration and production operations of CLR in the June quarter. This is because Continental Resources is among the leading producer of oil in the United States, having a strong presence in the prolific Bakken play of North Dakota and Montana. The quarterly earnings are likely to have gained from this.

Earnings Whispers

Our proven model does not indicate an earnings beat for Continental Resources 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: CLR’s Earnings ESP is -0.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Continental Resources currently carries a Zacks Rank #2.

Stocks to Consider

Here are some firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Hess Corporation HES has an Earnings ESP of +3.73% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hess is scheduled to release second-quarter results on Jul 27. The Zacks Consensus Estimate for HES’ earnings is pegged at $2.05 per share, suggesting an increase of 754.2% from the prior-year reported figure.

Enterprise Products Partners L.P. EPD has an Earnings ESP of +2.23% and a Zacks Rank of 2.

Enterprise Products is scheduled to report second-quarter results on Aug 3. The Zacks Consensus Estimate for EPD’s earnings is pegged at 62 cents per share, suggesting a significant increase from the prior-year reported figure.

Valero Energy Corporation VLO has an Earnings ESP of +10.22% and a Zacks Rank #1.

Valero Energy is scheduled to release second-quarter earnings on Jul 28. The Zacks Consensus Estimate for Valero Energy’s earnings is pegged at $8.78 per share, suggesting a massive increase from the prior-year reported figure.

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


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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
Hess Corporation (HES) : Free Stock Analysis Report
 
Valero Energy Corporation (VLO) : Free Stock Analysis Report
 
Continental Resources, Inc. (CLR) : Free Stock Analysis Report
 
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