Helmerich & Payne (HP), a leading oil and gas well-drilling contractor, is set to report its Q2 2024 earnings on July 24. Analysts anticipate a year-over-year decline in both earnings and revenue, with an expected EPS of $0.77, down 29.4% from the previous year, and revenues projected at $670.57 million, a 7.4% decrease. While the consensus outlook provides important context, the actual results and management’s discussion on the earnings call will play a crucial role in determining the stock’s near-term performance. Investors will be keenly watching to see if HP can surpass these expectations and deliver a positive earnings surprise.
Earnings Outlook
- Expected EPS: $0.77 per share, a decline of 29.4% year-over-year.
- Expected Revenue: $670.57 million, down 7.4% from the same quarter last year.
Estimate Revisions
- Recent Trend: The consensus EPS estimate has been revised downwards by 2.01% in the last 30 days, indicating a more cautious outlook from analysts.
Earnings ESP and Zacks Rank
- Earnings ESP (Expected Surprise Prediction): +0.97%, suggesting a slight possibility of an earnings beat.
- Zacks Rank: #5 (Strong Sell), indicating low confidence in the stock’s near-term performance.
Analysis of Earnings Performance
Historical Performance
- Last Quarter: Helmerich & Payne reported earnings of $0.86 per share, slightly above the expected $0.85, delivering a positive surprise of 1.18%.
- Four-Quarter Trend: The company has surpassed consensus EPS estimates three times in the last four quarters.
Broader Industry Context
Nabors Industries (NBR)
- Expected Loss: $1.82 per share, a 19.5% improvement year-over-year.
- Expected Revenue: $741.47 million, down 4.8% from the previous year.
- Earnings ESP: -57.36%, suggesting a high likelihood of missing the consensus EPS estimate.
- Zacks Rank: #3 (Hold), indicating moderate confidence.
Conclusion
Helmerich & Payne is expected to report lower revenues and earnings for Q2 2024, with an EPS estimate of $0.77 and revenue of $670.57 million. While the Earnings ESP of +0.97% suggests a slight chance of an earnings beat, the Zacks Rank of #5 (Strong Sell) lowers confidence in a positive surprise. Historical performance shows a tendency to exceed expectations, but investors should consider broader market conditions and management’s insights during the earnings call.
Given the mixed signals from estimate revisions and Zacks Rank, Helmerich & Payne doesn’t appear to be a strong candidate for an earnings beat. However, other factors and potential catalysts should be considered when evaluating this stock ahead of its earnings release on July 24, 2024.
