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Are You Expecting This from Hess?

By Seth Jayson - Updated Apr 7, 2017 at 12:09PM

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Checking expectations

Hess (NYSE: HES) is expected to report Q3 earnings around Oct. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Hess's revenues will expand 5.3% and EPS will expand 9.0%.

The average estimate for revenue is $9.19 billion. On the bottom line, the average EPS estimate is $1.21.

Revenue details
Last quarter, Hess chalked up revenue of $9.31 billion. GAAP reported sales were 5.6% lower than the prior-year quarter's $9.85 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.72. GAAP EPS of $1.61 for Q2 were 9.6% lower than the prior-year quarter's $1.78 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 25.7%, 370 basis points better than the prior-year quarter. Operating margin was 12.4%, 120 basis points better than the prior-year quarter. Net margin was 5.9%, 30 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $37.61 billion. The average EPS estimate is $5.82.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 920 members out of 952 rating the stock outperform, and 32 members rating it underperform. Among 206 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give Hess a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hess is outperform, with an average price target of $70.56.

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Stocks Mentioned

Hess Corporation Stock Quote
Hess Corporation
$119.07 (1.14%) $1.34

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