Hess Corporation Poised for Q4 Earnings Report Amid Mixed Performance
Hess Corporation (HES), valued at a market cap of $42 billion, stands out as a prominent player in the global energy sector. Based in New York City, the company focuses on oil and natural gas exploration and production in strategic locations around the world. With a commitment to advanced technologies and sustainable practices, Hess aims to provide dependable energy solutions. The company is scheduled to announce its Q4 earnings on Wednesday, Jan. 29.
Anticipated Earnings and Analyst Expectations
As Hess approaches its quarterly earnings release, analysts project the company will report a profit of $1.66 per share. This marks a 1.8% increase from $1.63 per share during the same period last year. Notably, Hess has exceeded Wall Street’s earnings per share (EPS) estimates in its last four quarterly reports.
In Q3, Hess reported adjusted earnings of $2.14 per share, surpassing the consensus estimate by 13.8%. This success was attributed to higher production levels in Guyana and Bakken, alongside rising commodity prices. For fiscal year 2024, analysts forecast that Hess will achieve an EPS of $9.74, a significant jump of 92.9% from $5.05 in fiscal 2023.
Stock Performance Over the Past Year
Over the last 52 weeks, shares of Hess have declined by 6.3%, trailing behind the S&P 500 Index’s ($SPX) impressive 27.2% rise and the Energy Select Sector SPDR Fund’s (XLE) 2.8% return. The company’s struggles can be linked to lower oil prices, reduced production levels, and increased operational costs. Additionally, challenges in securing new exploration opportunities have hindered Hess’s growth in recent years.
Recent Developments and Analyst Sentiment
Despite these challenges, HES stock rose by over 1% on Jan. 2, buoyed by an uptick in energy stocks as WTI crude oil prices hit a 2.5-month high. However, after its Q3 earnings release on Oct. 30, shares saw a small decline. The company reported revenue of $3.2 billion, representing a 12.7% year-over-year growth. Additionally, net production from its exploration and production (E&P) segment reached 461,000 barrels of oil equivalent per day (boepd), a 17% increase from 395,000 boepd in Q3 2023.
Outlook and Analyst Ratings
The consensus opinion regarding HES stock is moderately bullish, currently rated as a “Moderate Buy.” Among the 15 analysts covering the stock, six recommend a “Strong Buy,” while nine suggest a “Hold.”
HES’ average analyst price target stands at $166.77, indicating a potential upside of 22.7% from current levels.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
