Hess Corporation Prepares for Q3 Earnings Report Amid Mixed Outlook
Hess Corporation (HES) is scheduled to announce its third-quarter 2024 results on October 30, before the stock market opens.
In the previous quarter, Hess reported earnings of $2.62 per share, surpassing the Zacks Consensus Estimate of $2.48. This increase was mainly driven by higher oil equivalent production volumes and rising commodity prices.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Hess has consistently exceeded earnings expectations for the last four quarters, achieving an average surprise of 33.6%. This performance is illustrated in the graph below:
Hess Corporation Price and EPS Surprise
Hess Corporation price-eps-surprise | Hess Corporation Quote
Earnings Estimates Overview
The current Zacks Consensus Estimate for third-quarter earnings stands at $1.96. This estimate reflects no upward adjustments and two downward revisions in the past week, representing a 19.5% increase from the same period last year.
Furthermore, the revenue estimate of $3.10 billion suggests a 9.42% rise compared to the prior year.
Key Considerations
Hess is expected to maintain stable performance in Q3, bolstered by its strong production outlook and premium drilling locations in both the Bakken shale and the Stabroek Block offshore Guyana.
However, Hess faces challenges as the spot price of West Texas Intermediate crude oil fell by 7.1% year over year and 6.53% quarter over quarter, according to the U.S. Energy Information Administration. Additionally, there were declines in international oil prices during the same period.
The decrease in commodity prices is likely to have impacted the profitability of exploration and production companies like Hess. Furthermore, an anticipated rise in unit costs per barrel may have increased overall costs, potentially affecting Hess’s earnings for the quarter.
Earnings Predictions
Based on the current data, it appears that Hess may not outperform market expectations this quarter. Generally, a mix of positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) enhances the likelihood of an earnings beat, which does not apply in this case.
Earnings ESP: Hess holds an Earnings ESP of -0.79%. For interested investors, our Earnings ESP Filter can help identify the best stocks for potential gains.
Zacks Rank: Currently, Hess has a Zacks Rank of #4 (Sell).
Alternative Stocks to Consider
Here are a few stocks that may present better opportunities to exceed earnings expectations this reporting cycle:
Exxon Mobil Corporation (XOM) has an Earnings ESP of +0.02% and a Zacks Rank of #3. Exxon’s earnings announcement is set for November 1. In the previous four quarters, XOM matched or exceeded earnings expectations twice, with an average surprise of 1.8%.
Cheniere Energy (LNG) features an Earnings ESP of +12.21% and a Zacks Rank of #3, with its earnings release scheduled for October 31. Cheniere has reported positive surprises in two of the last four quarters, averaging 55.9%.
Murphy USA (MUSA) possesses an Earnings ESP of +0.94% and a Zacks Rank of #3. Murphy’s earnings announcement is planned for October 30 and has generally exceeded expectations, delivering an average surprise of 3.5% over the past four quarters.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
