HES Poised to Report Q1 Earnings: Here's What You Need to Know

Hess Corporation HES is set to report first-quarter 2025 results on April 30.

In the last reported quarter, its adjusted earnings of $1.76 per share beat the Zacks Consensus Estimate of $1.51, primarily attributed to higher oil equivalent production volumes and decreased costs.

Hess’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of almost 30%. This is depicted in the graph below:

HES’ Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of $1.77 has witnessed three downward revisions and two upward revisions in the past 30 days. The estimated figure suggests a decline of almost 44% from the prior-year reported number.

The Zacks Consensus Estimate for revenues of $2.9 billion indicates a 13.2% decrease from the year-ago recorded figure.

Factors to Consider for HES

Per the data from the U.S. Energy Information Administration (“EIA”), the average Cushing, OK, WTI spot prices for January, February and March of this year were $75.74, $71.53 and $68.24 per barrel, respectively. Thus, the overall pricing environment was favorable for HES’ upstream operations in the first quarter, as the breakeven costs of the exploration and production companies in the shale plays are significantly lower.

However, the pricing scenario was healthier in the prior-year period, likely leading to a fall in production volumes. We believe that HES’ total daily oil equivalent production volumes will decline 1.1% year over year in the first quarter of 2025.

Earnings Whispers

Our proven model does not indicate an earnings beat for HES 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: HES has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: HES 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.

APA Corporation APA is expected to post an earnings beat when it announces first-quarter results on May 7. It has an Earnings ESP of +4.65% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for APA’s first-quarter earnings is pinned at 81 cents per share, indicating year-over-year growth of almost 4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Devon Energy DVN is expected to come up with an earnings beat when it reports first-quarter results on May 6. DVN has an Earnings ESP of +1.71% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for DVN’s first-quarter earnings is pinned at $1.25 per share, indicating year-over-year growth of 8%.

Antero Resources Corporation AR currently has an Earnings ESP of +3.79% and a Zacks Rank #2.

Antero Resources is scheduled to release first-quarter earnings on April 30. The Zacks Consensus Estimate for AR’s earnings is pegged at 87 cents per share, suggesting a massive improvement from the prior-year reported figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research