| Hess Corp (HES): What's in Store this Earnings Season? | |
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Hess Corporation HES is slated to report fourth-quarter 2015 results before the opening bell on Jan 27, 2016.
In the last quarter, the company’s loss from continuing operations of $1.03 per share was narrower than the Zacks Consensus Estimate of a loss of $1.13. However, the bottom line compared unfavorably with the year-ago quarter earnings of $1.24. Let’s see how things are shaping up prior to the announcement.
Factors Likely to Affect Earnings
Hess' sensitivity to gas/oil price volatility as well as drilling results, costs, geo-political risks and project delays are likely to limit the upside potential in the fourth quarter. As a result, the company’s overall activities during the October-December period were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the fourth quarter declined to a loss of $1.25 from a loss of $1.15 per share over the last 30 days.
Hess remains on track with its multi-year transformation program. However, to support its capital expenditures through 2016, the company continues to be highly dependent on major asset sales. Hence, the company’s growth and returns picture will likely be hindered by the asset sale programs in the upcoming quarters.
Moreover, Hess’ priority remains investment in future growth with a balanced approach between unconventional, exploitation and exploration. Recently, the company divested its retail business and is in the process of shedding its upstream assets in Thailand and the trading business. The amount raised through asset sale is expected to help fund E&P investments. The initiatives undertaken by the company in the quarter should reflect positively in the upcoming earnings as well.
Earnings Whispers
Our proven model does not conclusively show that Hess is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Earnings ESP for Hess is -17.32%. This is because the Most Accurate estimate stands at a loss of $1.49 while the Zacks Consensus Estimate is pegged at a loss of $1.27.
Zacks Rank: Hess carries a Zacks Rank #4 (Sell). We caution against Sell-rated stocks (#4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks from the same industry that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Accuray Incorporated ARAY has an Earnings ESP of +100% and a Zacks Rank #1.
Scana Corporation SCG has an Earnings ESP of +2.50% and a Zacks Rank #2.
Tesoro Corporation TSO has an Earnings ESP of +0.47% and a Zacks Rank #2.
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Hess Corporation
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CODE : HES |
ISIN : US42809H1077 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Hess Corp. est une société d’exploration minière et de pétrole basée aux Etats-Unis D'Amerique. Hess Corp. est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 42,1 milliards US$ (37,8 milliards €). La valeur de son action a atteint son plus bas niveau récent le 17 novembre 1989 à 10,06 US$, et son plus haut niveau récent le 19 septembre 2024 à 133,50 US$. Hess Corp. possède 315 053 615 actions en circulation. |