Hess Corporation HES is set to report fourth-quarter 2024 results on Jan. 29, before the opening bell.

In the last reported quarter, Hess’ earnings of $2.14 per share beat the Zacks Consensus Estimate of $1.88, driven by higher oil equivalent production volumes.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 29.03%. This is depicted in the graph below: 

Hess Corporation Price and EPS Surprise

Hess Corporation price-eps-surprise | Hess Corporation Quote

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.63 has witnessed one upward and two downward revisions in the past 30 days. The estimated figure is in line with the prior-year reported number.

The Zacks Consensus Estimate for revenues of $3.07 billion indicates a 1.01% improvement from the year-ago reported figure.

Factors to Consider

Hess is anticipated to have sustained a stable performance in the fourth quarter, owing to a strong production outlook aided by its numerous premium untapped drilling locations in the productive Bakken shale and the Stabroek Block offshore Guyana.

However, challenges are likely to have loomed as the spot price of West Texas Intermediate crude oil dropped 10.03% year over year and 7.44% sequentially, per data from the U.S. Energy Information Administration. In addition to crude oil prices, natural gas markets saw significant declines.

Henry Hub spot natural gas prices averaged $2.44 per million British thermal units (MMBtu) in the fourth quarter, down from $2.74/MMBtu a year ago. Since Hess has substantial natural gas operations, particularly in the Bakken region, the unfavorable pricing environment could further dampen revenues.

The fall in commodity prices is anticipated to have weighed on the profitability of exploration and production players like Hess. The company also expects an increase in unit costs per barrel of oil equivalent that might have led to a rise in input costs, affecting HES’ fourth-quarter earnings.

These factors are anticipated to have affected demand and pricing dynamics, negatively impacting HES' financial performance for the 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 has an Earnings ESP of -5.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

EQT Corporation EQT currently has an Earnings ESP of +4.50% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

EQT is scheduled to release fourth-quarter earnings on Feb. 18. The Zacks Consensus Estimate for EQT’s earnings is pegged at $0.50 per share, suggesting a 4.17% increase from the prior-year reported figure.

Baker Hughes BKR presently has an Earnings ESP of +0.48% and a Zacks Rank #3.

Baker Hughes is scheduled to release fourth-quarter earnings on Jan. 30. The Zacks Consensus Estimate for BKR’s earnings is pegged at 63 cents per share, suggesting a 23.53% increase from the prior-year reported figure.

Viper Energy VNOM currently has an Earnings ESP of +3.07% and a Zacks Rank #3.

Viper Energy is scheduled to release fourth-quarter earnings on Feb. 24. The Zacks Consensus Estimate for VNOM’s earnings is pegged at $0.40 per share, suggesting a 40.3% decline from the prior-year reported figure.

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Hess Corporation (HES) : Free Stock Analysis Report

EQT Corporation (EQT) : Free Stock Analysis Report

Baker Hughes Company (BKR) : Free Stock Analysis Report

Viper Energy Inc. (VNOM) : Free Stock Analysis Report

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