We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors to Pay Attention to Ahead of BP's Q2 Earnings Release
Read MoreHide Full Article
BP plc (BP - Free Report) is set to report second-quarter 2022 results on Aug 2.
In the last reported quarter, the leading integrated energy company surpassed the Zacks Consensus Estimate, thanks to higher realizations of commodity prices. It beat the consensus estimates in all the prior four quarters, the average earnings surprise being 19.9%. This is depicted in the graph below:
Let’s see how things have shaped up prior to this announcement.
The Zacks Consensus Estimate for second-quarter earnings per share of $2.2 has witnessed four upward and no downward revisions over the past 60 days. The estimated figure suggests an improvement of 165.1% from the prior-year reported number.
The consensus estimate for second-quarter revenues of $52.9 billion indicates a 40.7% increment 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.
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 BP’s second-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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.20 per share. 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 #1.
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:
ExxonMobil is scheduled to release second-quarter results on Jul 29. The Zacks Consensus Estimate for XOM’s earnings is pegged at $3.64 per share, suggesting an increase of 230.9% from the prior-year reported figure.
Enterprise Products Partners L.P. (EPD - Free Report) has an Earnings ESP of +2.42% 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.
ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3.
ConocoPhillips is scheduled to release second-quarter earnings on Aug 4. The Zacks Consensus Estimate for ConocoPhillips’ earnings is pegged at $3.78 per share, suggesting a significant increase from the prior-year reported figure.
Image: Bigstock
Factors to Pay Attention to Ahead of BP's Q2 Earnings Release
BP plc (BP - Free Report) is set to report second-quarter 2022 results on Aug 2.
In the last reported quarter, the leading integrated energy company surpassed the Zacks Consensus Estimate, thanks to higher realizations of commodity prices. It beat the consensus estimates in all the prior four quarters, the average earnings surprise being 19.9%. This is depicted in the graph below:
Let’s see how things have shaped up prior to this announcement.
BP p.l.c. Price and EPS Surprise
BP p.l.c. price-eps-surprise | BP p.l.c. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter earnings per share of $2.2 has witnessed four upward and no downward revisions over the past 60 days. The estimated figure suggests an improvement of 165.1% from the prior-year reported number.
The consensus estimate for second-quarter revenues of $52.9 billion indicates a 40.7% increment 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.
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 BP’s second-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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.20 per share. 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 #1.
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:
Exxon Mobil Corporation (XOM - Free Report) has an Earnings ESP of +3.58% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil is scheduled to release second-quarter results on Jul 29. The Zacks Consensus Estimate for XOM’s earnings is pegged at $3.64 per share, suggesting an increase of 230.9% from the prior-year reported figure.
Enterprise Products Partners L.P. (EPD - Free Report) has an Earnings ESP of +2.42% 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.
ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3.
ConocoPhillips is scheduled to release second-quarter earnings on Aug 4. The Zacks Consensus Estimate for ConocoPhillips’ earnings is pegged at $3.78 per share, suggesting a significant increase from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.