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Factors Likely to Have Influenced Hess' (HES) Earnings in Q2
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Hess Corporation (HES - Free Report) is set to report earnings results for second-quarter 2023 on Jul 26, before the opening bell.
In the last reported quarter, Hess’s earnings per share of $1.13 beat the Zacks Consensus Estimate of $1.03 due to increased hydrocarbon production. The positives were partially offset by lower realizations of commodity prices.
The company’s earnings per share beat the Zacks Consensus Estimate in the prior four quarters, the average surprise being 4.9%. This is depicted in the graph below:
The Zacks Consensus Estimate for second-quarter earnings per share of 77 cents has witnessed no upward and four downward revisions over the past 30 days. The estimated figure suggests a 64.1% decline from the prior-year reported number.
The Zacks Consensus Estimate for second-quarter revenues of $2.5 billion indicates a 15.7% decline from the year-ago reported figure.
Factors to Consider
In the June-end quarter of 2023, the oil price scenario was not healthier than the prior year. Thus, realized crude prices before hedges, one of the key metrics in determining crude oil sales, is likely to have declined.
The Zacks Consensus Estimate for Hess’ daily crude oil production volumes in the United States is pegged at 95 thousand barrels of oil per day, suggesting an increase from the 88 thousand barrels per day reported in the year-ago quarter. Our estimate for Hess’ daily crude oil production volumes in the United States is pegged at 92.6 thousand barrels per day, also indicating an improvement from the year-ago reported figure.
However, the Zacks Consensus Estimate for Hess’ realized crude price, excluding hedging, in the United States is pegged at $74 per barrel, suggesting a decline from $106 per barrel in the year-ago quarter. We expect the metric at $66 per barrel, also implying a decrease from the year-ago reported figure.
Despite higher production, lower commodity prices are expected to have affected Hess’ performance in the second 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’s Earnings ESP is -25.42%. This is because the Most Accurate Estimate is pegged at earnings of 58 cents per share, while the Zacks Consensus Estimate is pegged at earnings of 77 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hess 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:
The company is scheduled to release second-quarter earnings on Jul 31. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 23 cents per share, suggesting a decline from the prior-year reported figure.
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +4.41% and a Zacks #3 at present.
Cactus is scheduled to release second-quarter results on Aug 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 74 cents per share, indicating an improvement from the year-ago quarter’s reported figure.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +5.30% and is a Zacks #3 Ranked player at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 9 cents per share, suggesting a decline from the prior-year reported figure.
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Factors Likely to Have Influenced Hess' (HES) Earnings in Q2
Hess Corporation (HES - Free Report) is set to report earnings results for second-quarter 2023 on Jul 26, before the opening bell.
In the last reported quarter, Hess’s earnings per share of $1.13 beat the Zacks Consensus Estimate of $1.03 due to increased hydrocarbon production. The positives were partially offset by lower realizations of commodity prices.
The company’s earnings per share beat the Zacks Consensus Estimate in the prior four quarters, the average surprise being 4.9%. This is depicted in the graph below:
Hess Corporation Price and EPS Surprise
Hess Corporation price-eps-surprise | Hess Corporation Quote
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings per share of 77 cents has witnessed no upward and four downward revisions over the past 30 days. The estimated figure suggests a 64.1% decline from the prior-year reported number.
The Zacks Consensus Estimate for second-quarter revenues of $2.5 billion indicates a 15.7% decline from the year-ago reported figure.
Factors to Consider
In the June-end quarter of 2023, the oil price scenario was not healthier than the prior year. Thus, realized crude prices before hedges, one of the key metrics in determining crude oil sales, is likely to have declined.
The Zacks Consensus Estimate for Hess’ daily crude oil production volumes in the United States is pegged at 95 thousand barrels of oil per day, suggesting an increase from the 88 thousand barrels per day reported in the year-ago quarter. Our estimate for Hess’ daily crude oil production volumes in the United States is pegged at 92.6 thousand barrels per day, also indicating an improvement from the year-ago reported figure.
However, the Zacks Consensus Estimate for Hess’ realized crude price, excluding hedging, in the United States is pegged at $74 per barrel, suggesting a decline from $106 per barrel in the year-ago quarter. We expect the metric at $66 per barrel, also implying a decrease from the year-ago reported figure.
Despite higher production, lower commodity prices are expected to have affected Hess’ performance in the second 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’s Earnings ESP is -25.42%. This is because the Most Accurate Estimate is pegged at earnings of 58 cents per share, while the Zacks Consensus Estimate is pegged at earnings of 77 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hess 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:
Viper Energy Partners LP (VNOM - Free Report) has an Earnings ESP of +47.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release second-quarter earnings on Jul 31. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 23 cents per share, suggesting a decline from the prior-year reported figure.
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +4.41% and a Zacks #3 at present.
Cactus is scheduled to release second-quarter results on Aug 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 74 cents per share, indicating an improvement from the year-ago quarter’s reported figure.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +5.30% and is a Zacks #3 Ranked player at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 9 cents per share, suggesting a decline from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.