Headquartered in New York, Hess Corporation (HES) is a global integrated energy company involved in the exploration, production, development, transportation, and sale of crude oil, natural gas liquids, and natural gas, valued at $44.9 billion by market cap. The energy company is expected to announce its fiscal second-quarter earnings for 2024 on Wednesday, July 31.
Ahead of the event, analysts expect Hess to report a profit of $2.39 per share, up 267.7% from $0.65 per share in the year-ago quarter. The company successfully beat the bottom-line estimates in each of the last four quarters.
In the previous quarter, Hess’ EPS grew 179.6% year over year to $3.16, beating the consensus estimate by 82.7%, driven by higher oil equivalent production volumes and increased oil and gas prices.
For the full year, analysts expect Hess to report EPS of $10.22, up 102.4% from $5.05 in fiscal 2023. Looking ahead, its EPS is expected to rise 14.1% annually to $11.66 in fiscal 2025.
HES stock has edged up 2.4% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 18.1% gains and the S&P 500 Energy Sector SPDR’s (XLE) 6.6% gains over the same time frame.
Hess Corporation's underperformance can be attributed to setbacks in exploration projects, notably in the Kaieteur and Canje blocks in Guyana, and uncertainties surrounding its acquisition by Chevron Corporation (CVX). The critical contract arbitration panel needed for the sale to Chevron has yet to reach a resolution, even three months after filing. This delay, potentially extending beyond this year as Hess anticipated, introduces uncertainty regarding the timeline for finalizing the acquisition deal.
On the bright side, HES stock surged 1.5% on Apr. 25 following a strong Q1 earnings report, driven by soaring oil and gas production. The company exceeded its bottom-line expectations and reported revenues of $3.3 billion, beating the market's projected estimate of $2.93 billion.
Analysts’ consensus opinion on HES stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, five advise a “Strong Buy” rating, and the remaining 11 analysts recommend a “Hold” rating.
The average analyst price target for HES is $170.86, indicating a potential upside of 15.7% from the prevailing market price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
