Advertisement

Is a Beat in Store for Hess (HES) This Earnings Season?

Hess Corporation HES is set to report first-quarter 2024 results on Apr 25.

In the last reported quarter, Hess beat the Zacks Consensus Estimate for the bottom line on higher oil equivalent production volumes. It surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 17.5%.

Hess Corporation Price and EPS Surprise

Hess Corporation Price and EPS Surprise
Hess Corporation Price and EPS Surprise

Hess Corporation price-eps-surprise | Hess Corporation Quote

Let’s see how things have shaped up prior to this announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of $1.74 has witnessed no downward revision and two upward revisions in the past 30 days. The estimated figure suggests an improvement of almost 54% from the prior-year reported number.

ADVERTISEMENT

The consensus estimate for first-quarter revenues of $2.9 billion indicates a 16.5% increase from the year-ago reported figure.

What the Quantitative Model Suggests

Our proven model predicts 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. This is just the case here.

Earnings ESP: Hess has an Earnings ESP of +10.21%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Factors Driving the Better-Than-Expected Earnings

Per data provided by the U.S. Energy Information Administration, the average spot West Texas Intermediate crude oil prices per barrel in January, February and March were $74.15, $77.25 and $81.28, respectively, compared with $78.12, $76.83 and $73.28 in the year-ago months.

On the production front, we expect HES, a leading global independent exploration and production company, to produce 4% year-over-year higher daily oil equivalent volumes in the first quarter.

Thus, favorable commodity prices and production are likely to have aided the upstream player’s bottom line.

Other Stocks to Consider

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

EOG Resources, Inc. EOG currently has an Earnings ESP of +1.10% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

EOG Resources is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for EOG’s quarterly earnings is pegged at $2.73 per share, implying a 1.5% increase from the prior-year reported figure.

Antero Resources AR presently has an Earnings ESP of +1,579.97% and a Zacks Rank #3.

Antero Resources is scheduled to release first-quarter earnings on Apr 24. The Zacks Consensus Estimate for AR’s quarterly earnings is pegged at break-even per share, indicating a 100% decline from the prior-year reported number.

Enbridge Inc. ENB currently has an Earnings ESP of +2.44% and a Zacks Rank #3.

Enbridge is scheduled to release first-quarter earnings on May 10. The Zacks Consensus Estimate for ENB’s quarterly earnings is pegged at 59 cents per share, indicating a 6.4% decrease from the prior-year reported figure.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hess Corporation (HES) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

Enbridge Inc (ENB) : Free Stock Analysis Report

Antero Resources Corporation (AR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research