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Factors Likely to Have Influenced Hess' (HES) Earnings in Q1

Hess Corporation HES is set to report earnings results for first-quarter 2023 on Apr 26, before the opening bell.

In the last reported quarter, Hess’s earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.69 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, the average surprise being 6.5%. This is depicted in the graph below:

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

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of $1.10 has witnessed one upward and five downward revisions over the past 30 days. The estimated figure suggests a 15.4% decline from the prior-year reported number.

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The Zacks Consensus Estimate for first-quarter revenues of $2.5 billion indicates a 4.9% increase from the year-ago reported figure.

Factors to Consider

Per the U.S. Energy Information Administration data, the average West Texas Intermediate crude prices per barrel in January, February and March were $78.12, $76.83 and $73.28, respectively. Notably, in the year-ago months of January, February and March, average oil prices were $83.22 per barrel, $91.64 per barrel and $108.50 per barrel, respectively.

The oil price scenario was not healthier in the March-end quarter of 2023 than the prior year. Natural gas prices saw large declines and were exceptionally volatile in the first quarter, depicting that the upstream business was unfavorable in the quarter.

Rising costs have been acting as a major concern for the oil and gas industry, with several companies reporting increased costs for the ninth consecutive quarter. Lower commodity prices amid increasing costs are expected to have affected 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’s Earnings ESP is -5.79%. This is because the Most Accurate Estimate is currently pegged at earnings of $1.04 per share, while the Zacks Consensus Estimate is pegged at earnings of $1.10 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:

Enterprise Products Partners L.P. EPD currently has an Earnings ESP of +3.05% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for its earnings is pegged at 60 cents per share, indicating no change from the prior-year reported figure.

TechnipFMC plc FTI currently has an Earnings ESP of +3.71% and a Zacks Rank #3.

TechnipFMC is scheduled to release first-quarter earnings on Apr 27. The Zacks Consensus Estimate for its earnings is pegged at 4 cents per share, implying an increase from the prior-year reported figure.

Sunoco LP SUN has an Earnings ESP of +3.95% and is currently a Zacks #1 Ranked player.

Sunoco is scheduled to release first-quarter results on May 2. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.18 per share, suggesting a decline 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

Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report

Hess Corporation (HES) : Free Stock Analysis Report

TechnipFMC plc (FTI) : Free Stock Analysis Report

Sunoco LP (SUN) : Free Stock Analysis Report

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