Hess Corporation Set to Report Q1 Earnings Amid Market Challenges
Hess Corporation (HES) stands as a prominent player in the global energy sector, with a market capitalization of $39.3 billion. Based in New York City, the company specializes in oil and natural gas exploration and production across various strategic regions. Known for its dedication to innovative technologies and sustainable energy practices, Hess is expected to report its Q1 earnings on Thursday, April 24.
Leading up to this announcement, analysts anticipate Hess will post an adjusted profit of $1.93 per share, which marks a 38.9% decrease from the $3.16 per share reported in the same quarter last year. Notably, Hess has outperformed Wall Street’s EPS estimates for the past four quarters.
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In the last quarter, Hess recorded adjusted earnings of $1.76 per share, surpassing the consensus estimate by 16.6%. This performance was fueled by higher-than-expected production volumes, robust realized crude oil prices, and efficient cost management across its operations.
Looking ahead to fiscal 2025, analysts predict HES’ EPS will drop by 21.7%, falling from $9.68 in fiscal 2024. However, expectations improve for fiscal 2026, with anticipated earnings rebounding by 37.7% year-over-year to reach $10.44.
Over the past 52 weeks, Hess shares have decreased by 11.8%, underperforming the S&P 500 Index’s increase of 4.7%. In contrast, Hess has outperformed the Energy Select Sector SPDR Fund’s (XLE) decline of 15.5% during the same timeframe.
As of April 7, Hess shares closed over 2% lower, continuing a trend of declines as broader energy stocks and service providers experienced a downturn for a second consecutive session. The decline followed a significant drop in WTI crude oil prices, reaching a four-year low, which raised concerns about weakening demand and potential oversupply in the global energy market.
Despite these challenges, analysts maintain a moderately bullish outlook on HES Stock, with a consensus rating of “Moderate Buy.” Out of 15 analysts covering the Stock, six recommend a “Strong Buy,” while nine suggest a “Hold.”
The average analyst price target for HES stands at $166.77, indicating a potential upside of 22.7% from current levels.
On the date of publication, Kritika Sarmah did not hold positions in any of the securities mentioned in this article. All information and data provided in this article are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
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