WPX Energy
WPX
is set to report third-quarter earnings on Nov 2, after market close. This oil and gas company delivered an earnings surprise of 500% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
WPX Energy realized cost savings through efficient management of resources. This is likely to have benefited its third-quarter earnings. A substantial portion of WPX Energy’s oil production has been hedged, which provided protection against price fluctuations in the third quarter.
During the quarter, it entered into an agreement to combine in an all-stock merger with Devon Energy.
Expectation
WPX Energy expects third-quarter oil production to be 140,000 barrels of oil per day (Boe/d).
The Zacks Consensus Estimate for the bottom line for the third quarter is pegged at 6 cents per share, indicating a 33.33% decline from the prior-year reported figure.
WPX Energy, Inc. Price and EPS Surprise
WPX Energy, Inc. price-eps-surprise
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WPX Energy, Inc. Quote
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for WPX Energy this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Earnings ESP
: The company has an Earnings ESP of +35.32%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank
: WPX Energy currently carries a Zacks Rank #3.
Other Stocks to Consider
Investors can also consider the following players from the same
industry
that too have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Devon Energy
DVN
is set to release third-quarter earnings on Oct 29. It has an Earnings ESP of +23.99% and carries a Zacks Rank #3.
Cheniere Energy, Inc
.
LNG
is scheduled to release third-quarter 2020 numbers on Nov 6. It has an Earnings ESP of +31.36% and carries a Zacks Rank #3.
EOG Resources Inc
.
EOG
is slated to release third-quarter 2020 numbers on Nov 6. It has an Earnings ESP of +29.17% and carries a Zacks Rank 3.
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