Back to top

Image: Bigstock

Helmerich & Payne to Post Q1 Earnings: Here's What to Expect

Read MoreHide Full Article

Helmerich & Payne, Inc. (HP - Free Report) is set to release first-quarter earnings on Feb. 5, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 69 cents per share on revenues of $691.43 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let us delve into the factors that might have influenced HP’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

 

Highlights of HP’s Q4 Earnings

In the last reported quarter, the Tulsa, OK-based oil and gas drilling company’s earnings missed the consensus mark. HP reported adjusted earnings of 76 cents per share, which missed the Zacks Consensus Estimate by 3 cents. This was due to the weakness in the company's International Solutions and Gulf of Mexico segments. Operating revenues of $693.8 million beat the Zacks Consensus Estimate by 1%.

HP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, delivering an average earnings surprise of 14.88%. This is depicted in the graph below:

Helmerich & Payne, Inc. Price and EPS Surprise

Helmerich & Payne, Inc. Price and EPS Surprise

Helmerich & Payne, Inc. price-eps-surprise | Helmerich & Payne, Inc. Quote

 

Trend in Estimate Revision for HP Stock

The Zacks Consensus Estimate for first-quarter 2025 earnings has witnessed two upward revisions and a downward movement in the past 30 days. The estimated figure indicates a 2.11% year-over-year increase. However, the Zacks Consensus Estimate for revenues indicates a decrease of 28.87% from the year-ago period.

 

Factors to Consider Ahead of HP’s Q1 Release

Helmerich & Payne generally makes money by offering drilling services and technology to oil and gas companies. HP operates in several regions, including North America, the Gulf of Mexico and internationally. The company earns revenues by drilling for oil and gas in these areas and by developing technologies that improve drilling efficiency and well quality.

HP's revenues are likely to have been positively impacted in the quarter to be reported. Our model predicts first-quarter revenues to have increased to $688 million from the year-ago period’s level of $677.1 million.  This increase is due to the higher performance across North America Solutions, Offshore Gulf of Mexico and Other segments.

According to our model, HP’s North America Solutions is expected to grow 2.5% year over year, reaching $609.4 million in the quarter to be reported. The Offshore Gulf of Mexico is expected to increase 11.3% year over year, totaling $28.4 million, while the Other segment is anticipated to grow 1.1% year over year, reaching $18 million during the same time.

On another positive note, the company’s research and development expenses are expected to have fallen 40.7%, totaling $5.1 million. This reduction in costs highlights the company's efforts to improve efficiency and control expenses.

 

What Does Our Model Say About HP?

Our proven model predicts an earnings beat for Helmerich & Payne this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

HP has an Earnings ESP of +5.29% and a Zacks Rank #3 at present.

 

Other Stocks to Consider

Helmerich & Payne is not the only energy company that have the right elements to post an earnings beat in this reporting cycle. Here are some other firms from the space that you may want to consider on the basis of our model:

California Resources (CRC - Free Report) has an Earnings ESP of +2.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on March 3. Notably, the Zacks Consensus Estimate for California’s 2025 earnings per share indicates 8.03% year-over-year growth. Valued at around $4.67 billion, CRC’s shares have risen 0.1% in a year.

Ovintiv (OVV - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 26.

In the past 30 days, the Zacks Consensus Estimate for 2025 earnings has moved up 6.3%. Valued at around $11.34 billion, OVV’s shares have gained 2.1% in a year.

Energy Transfer (ET - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 11.

Notably, the Zacks Consensus Estimate for Energy Transfer’s 2025 earnings per share indicates 6.08% year-over-year growth. Valued at around $67.83 billion, ET has gained 40% in a year.

Published in