BP Set to Report Q2 Earnings: Here's What You Need to Know
In the last reported quarter, its adjusted earnings of 53 cents per share missed the Zacks Consensus Estimate of 56 cents, primarily attributed to lower liquid price realizations and weaker refining margins. Lower contributions from the company's customers and products business also affected the results.
Earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and beat twice, delivering an average negative surprise of 2.92%. This is depicted in the graph below:
Estimate Trend of BP
The Zacks Consensus Estimate for second-quarter earnings per share of 68 cents has remained unchanged in the past seven days. The estimated figure indicates a 32% decline from the prior-year reported number.
The Zacks Consensus Estimate for revenues of $60.7 billion indicates a 26% increase from the year-ago recorded figure.
Factors to Consider
According to the U.S. Energy Information Administration ('EIA'), the average spot prices for Cushing, OK, West Texas Intermediate (WTI) crude for April, May and June were $63.54, $62.17 and $68.17 per barrel, respectively. Based on the EIA data, the pricing environment was healthier in the first quarter, with average prices of $75.74, $71.53 and $68.24 per barrel for January, February and March, respectively. The same story also applies to natural gas prices. Softer commodity prices are expected to have hurt BP's upstream business.
Coming to the volume, sequentially, BP expects its oil equivalent production volume to broadly remain flat. Hence, considering softer prices and flat volumes, the developments are not favorable for the British energy giant's upstream business.
Earnings Whispers
Our proven model does not indicate an earnings beat for BP 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: BP 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: BP 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.
Canadian Natural Resources CNQ is a Calgary-based independent energy company. It currently has an Earnings ESP of +4.89% and a Zacks Rank #3.
Canadian Natural Resources is scheduled to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for CNQ's earnings is pegged at 44 cents per share, indicating a 31.3% decrease from the prior-year reported figure.
MPLX LP MPLX currently has an Earnings ESP of +1.36% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
MPLX is set to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for MPLX's earnings is pegged at $1.07 per share, indicating a 6.96% decline from the prior-year reported figure.
Chevron Corporation CVX currently has an Earnings ESP of +3.63% and a Zacks Rank #3.
Chevron is set to release second-quarter 2025 earnings on Aug. 1. The Zacks Consensus Estimate for CVX's earnings is pegged at $1.66 per share, which indicates a decrease of 34.9% from the prior-year reported figure.
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Chevron Corporation (CVX): Free Stock Analysis Report
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