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What's in the Offing for Hess Corp's (HES) Earnings in Q4?

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Hess Corporation (HES - Free Report) is set to report earnings results for fourth-quarter 2022 on Jan 25, before the opening bell.

In the last reported quarter, Hess Corp’s earnings per share of $1.89 beat the Zacks Consensus Estimate by a penny due to higher realizations of commodity prices and increased hydrocarbon production.

The company’s earnings per share beat the Zacks Consensus Estimate in the prior four quarters, with the average surprise being 8.1%. This is depicted in the graph below:

Hess Corporation Price and EPS Surprise

 

Hess Corporation Price and EPS Surprise

Hess Corporation price-eps-surprise | Hess Corporation Quote

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.72 has witnessed one upward and two downward revisions over the past 30 days. The estimated figure suggests a 102.4% improvement from the prior-year reported number.

The Zacks Consensus Estimate for fourth-quarter revenues of $2.8 billion indicates a 22.4% increase 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 crude prices per barrel in October, November and December were $87.55, $84.37 and $76.44, respectively. Notably, in the year-ago October, November and December months, average oil prices were $81.48 per barrel, $79.15 per barrel and $71.71 per barrel, per the EIA’s data.

The pricing scenario of natural gas was also healthy, depicting that the upstream business was lucrative in the fourth quarter.

Being a leading shale oil and gas producer, Hess Corp is expected to have benefited from the favorable commodity price scenario. The Zacks Consensus Estimate for the company’s net production per day is pegged at 366 thousand barrels of oil equivalent (MBoE/D), suggesting an improvement from 316 MBoE/D in third-quarter 2021. Our estimate for the metric is 373.1 MBoE/D, suggesting a significant year-over-year improvement.

Higher production and commodity prices are expected to have aided the company’s performance in the to-be-reported quarter.

Earnings Whispers

Our proven model does not indicate 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 not the case here, as you will see below.

Earnings ESP: Hess Corp’s Earnings ESP is -3.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Hess Corp currently carries a Zacks Rank #3.

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:

Enterprise Products Partners (EPD - Free Report) has an Earnings ESP of +4.13% and is a Zacks #3 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise is scheduled to release fourth-quarter results on Feb 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 reported figure.

Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +2.23% and is a Zacks #3 Ranked player at present.

Valero is scheduled to release fourth-quarter results on Jan 26. The Zacks Consensus Estimate for VLO’s earnings is pegged at $7.19 per share, suggesting a massive improvement from the prior-year reported figure.

Chevron Corporation (CVX - Free Report) has an Earnings ESP of +5.18% and a Zacks Rank #3.

Chevron is scheduled to release fourth-quarter earnings on Jan 27. The Zacks Consensus Estimate for its earnings is pegged at $4.27 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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