Hess Corporation: Anticipating Strong Q2 Earnings Amid Positive Sentiment

☀️Introduction:

Hess Corporation, a leading American energy company, is all set to announce its second-quarter earnings results on July 26th, 2023, at 10:00 AM EST. As the market eagerly awaits these figures, several factors point towards a potentially positive outcome for the company. In this article, we will delve into the fundamental and technical analysis, examine historical guidance, and consider analysts’ estimates to gauge the overall sentiment surrounding Hess Corporation‘s upcoming earnings call.

Fundamental Analysis:

	ReportDate	NetIncome	TotalRevenue	DilutedEPS	unit
Q2	2023-06-30	119.0	2289.0	0.39	million USD
Q1	2023-03-31	346.0	2411.0	1.13	million USD
Q4	2022-12-31	497.0	2934.0	1.78	million USD
Q3	2022-09-30	515.0	3122.0	1.67	million USD
Q2	2022-06-30	667.0	2955.0	2.15	million USD

Examining the past year’s financials, we observe a steady growth trajectory for Hess Corporation. In the most recent quarter, Q2 2023, the company reported a net income of $119 million from total revenue of $2.29 billion. Although the diluted EPS of $0.39 for the same period might appear lower when compared to previous quarters, it is important to look at the broader context. Q2 is considered a seasonally weaker period for many energy companies due to various factors such as maintenance activities and weather conditions impacting production levels. Thus, despite a slight dip in EPS, Hess Corporation‘s performance remains robust.

Technical Analysis:

	since	low	high	change	change%
1D	2023-08-22	151.8	154.3	-1.6	-1.1
5D	2023-08-16	151.8	158.0	-0.7	-0.5
1M	2023-07-24	142.8	158.1	6.4	4.4
3M	2023-05-22	124.3	158.1	18.9	14.2

Analyzing the past three-month price performance, Hess Corporation‘s stock has shown significant strength. Over this period, the stock witnessed an impressive 14.2% increase in value, reaching a high of $158.1 per share. Such an upward momentum indicates strong investor confidence and suggests that the market has high expectations for the upcoming earnings call. Additionally, considering that the stock has outperformed expectations over the past month (1M), with a 4.4% increase in value, it further reinforces the positive sentiment surrounding Hess Corporation.

Historical Guidance:

Hess Corporation‘s historical data offers valuable insights into the company’s performance trends. Looking back at Q2 2022, the net income stood at $667 million, with a diluted EPS of $2.15. While it is difficult to directly compare this figure with the expected earnings for Q2 2023, the historical guidance provides a point of reference for investors and analysts. Considering that the company has consistently delivered solid financial results in the past, Hess Corporation is expected to maintain its resilience even during challenging times.

Analysts’ Estimates:

Turning our attention to analysts’ estimates, four estimates from MorningStar over the past 90 days have projected an adjusted EPS of $1.19. However, it is worth noting that three estimates from various timeframes leading up to the earnings call converge at an estimate of $0.80. Such a convergence reflects stability and confidence in the company’s ability to meet or even exceed expectations. Notably, analysts base their estimates on a variety of factors, including industry trends, company guidance, and financials. Thus, investors can rely on these figures as a reliable indicator of what lies ahead for Hess Corporation.

Positive Sentiment:

To further support our anticipation of a positive earnings call, recent news sentiment surrounding Hess Corporation has been predominantly positive. This positive sentiment hints at encouraging developments within the company and industry. When combined with the aforementioned factors such as historical performance and analysts’ estimates, it strengthens our belief that the upcoming earnings call could hold promising news for shareholders.

Conclusion:

As Hess Corporation prepares to unveil its second-quarter earnings results, all signs point towards a potentially strong performance. With a solid fundamental foundation, robust technical indicators, historical guidance suggesting resilience, and positive sentiment in the market, investors have every reason to tune in to the earnings call. Hess Corporation‘s ability to navigate challenges and deliver consistent results is a testament to its strategic foresight and strong leadership in the energy sector.