Valued at a market cap of $43.2 billion, Hess Corporation (HES) is an exploration and production company that explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The New York-based company is expected to announce its fiscal Q3 earnings results before the market opens on Wednesday, Oct. 30.
Ahead of this event, analysts project the oil and gas exploration company to report a profit of $2.20 per share, an increase of 34.2% from $1.64 per share in the year-ago quarter. Moreover, the company has consistently surpassed Wall Street's bottom-line estimates in the last four quarters. In Q2, the company reported an EPS of $2.62, which topped the consensus estimates by 5.7%.
For fiscal 2024, analysts expect HES to report an EPS of $10.22, up significantly 102.4% from $5.05 in fiscal 2023.
Shares of Hess have declined 2% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 34.9% rise and the Energy Select Sector SPDR Fund’s (XLE) 8.7% return over the same period.
On Sep. 30, shares of HES rose 1.6% as the U.S. Federal Trade Commission (FTC) approved the merger between the company and Chevron Corporation (CVX), a key step in finalizing the merger between the two oil giants. However, it’s expected that the merger won’t be finalized within the next 12 months due to arbitration between Chevron and Exxon Mobil regarding pre-emptive rights with Hess’ assets in Guyana.
Moreover, on Jul. 31, the stock rose over 1% after its Q2 earnings release as its revenue of $3.3 billion, and adjusted earnings of $2.62 per share, which grew 303.1% from a year ago, surpassed Wall Street’s estimates. The outperformance was primarily driven by strong growth in oil production in Guyana coupled with higher realized prices for oil, natural gas, and natural gas liquids (NGL).
Analysts' consensus view on Hess Corporation’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, five recommend a "Strong Buy," and 10 suggest "Hold." This configuration has remained fairly stable over the past three months.
The average analyst price target for HES is $159.36, indicating a 13.6% potential upside from the current levels.
On the date of publication, Sohini Mondal 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.
