1Q16 earnings release
Hess (HES) is expected to release its fiscal 1Q16 earnings on April 27, 2016.
Hess’s 1Q16 revenue estimate
Hess’s 1Q16 revenue estimates are lower than its revenue estimates for the previous four quarters. For 1Q16, its revenue estimate is ~$1.1 billion. That’s ~24% lower than 4Q15 revenue and ~32% lower than 1Q15 revenue. The above graph shows that Hess’s revenue mostly beat estimates in the previous four quarters. Investors will watch to see if this trend continues in 1Q16.
Hess’s 1Q16 EPS estimates
Hess’s EPS (earnings per share) estimates were also lower than the previous quarter’s estimates. Its 1Q16 loss per share estimate is $1.81. Its 4Q15 loss per share was $1.40. The corresponding quarter’s loss per share in 2015 was $0.98.
Hess’s peers, including Apache (APA), Cimarex Energy (XEC), and Concho Resources (CXO), are expected to report earnings per share of -$0.84, -$0.36, and $0.01, respectively. These companies combined make up ~8% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
According to Hess’s 4Q15 earnings release, lower realized energy prices reduced adjusted net income by ~$420 million. Results for 4Q15 were also inclusive of non-cash goodwill and other impairment-related charges, which amounted to ~$1.4 billion after taxes.
Hess’s 2015 earnings recap
Hess reported a 2015 loss per share of $3.90 compared to earnings per share of $4.20 in 2014.
For 2015, revenues came in at $6.6 billion versus $10.7 billion in 2014.
Next, let’s look at Hess’s production guidance and key management strategies.