Helmerich & Payne to Post Q4 Earnings: Here's What to Expect

Helmerich & Payne, Inc. HP is set to release fiscal-fourth-quarter earnings on Nov. 17, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 26 cents per share on revenues of $975.66 million.

Let us delve into the factors that might have influenced HP’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of HP’s Q3 Earnings

In the last reported quarter, the Tulsa, OK-based oil and gas drilling company’s earnings beat the consensus mark. HP reported adjusted net income of 22 cents per share, which beat the Zacks Consensus Estimate by 2 cents. Operating revenues of $1 billion also beat the Zacks Consensus Estimate by $42 million. In particular, sales from Drilling Services beat the consensus mark by 3.4%.

HP’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters and missed the mark twice, delivering an average negative surprise of 21.96%.

This is depicted in the graph below: 

Helmerich & Payne, Inc. Price and Consensus

Helmerich & Payne, Inc. price-consensus-chart | Helmerich & Payne, Inc. Quote

Trend in Estimate Revision for HP Stock

The Zacks Consensus Estimate for fiscal fourth-quarter 2025 earnings has seen no upward or downward revisions over the past seven days. The estimated figure indicates a 65.79% year-over-year decrease. However, the Zacks Consensus Estimate for revenues indicates an increase of 40.63% from the year-ago period.

Factors to Consider Ahead of HP’s Q4 Release

Helmerich & Payne generates revenues primarily by providing contract drilling services for oil and gas exploration and production companies. It earns money through long-term drilling contracts, performance-based fees and the deployment of its advanced drilling rigs and related technologies.

HP's revenues are likely to have improved positively in the quarter to be reported.The Zacks Consensus Estimate for fiscal-fourth revenues is up from the year-ago quarter’s $697.7 million. According to our model estimates, revenues from the International Solutions, Offshore Solutions and Other Revenue segments are expected to increase year over year by 429.6%, 461.6% and 138.3%, respectively, in the current quarter compared with the year-ago period.

The increase in HP's costs is likely to have impacted negatively its bottom line. The company's total expenses are expected to reach $903.5 million in the fiscal fourth quarter, a 53.9% increase from the same period last year. Notably, drilling services and other operating expenses are projected to rise from $416 million to $668.5 million. Similarly, depreciation and amortization costs are expected to increase from $97.8 million to $159 million. Selling, general and administrative expenses are also expected to grow from $60.2 million to $70.4 million over the same period.

What Does Our Model Say About HP?

The proven Zacks model does not conclusively predict an earnings beat for Helmerich & Payne this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. This is not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

HP’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%.

HP’s Zacks Rank:  HP currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some firms from the other space that you may want to consider, as these have the right combination of elements to post an earnings beat this season.

Copa Holdings, S.A. CPA, a passenger airline company,has an Earnings ESP of +1.93% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on Nov. 19. The Zacks Consensus Estimate for Copa Holdings’ 2025 earnings per share indicates 13.78% year-over-year growth. Valued at around $5.23 billion, CPA’s shares have gained 25.4% in a year.

Walmart Inc. WMT,Bentonville, AR-based consumer staples merchandise retail company,has an Earnings ESP of +1.15% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 20.

Notably, the Zacks Consensus Estimate for Walmart’s 2025 earnings per share indicates 9.09% year-over-year growth. Valued at around $824.71 billion, WMT’s shares have risen 20% in a year.

Ross Stores, Inc. ROST, Dublin, CA-based Apparel Retail company, has an Earnings ESP of +3.41% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 20.

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This article originally published on Zacks Investment Research (zacks.com).

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