Factors To Pay Attention To Ahead Of BP's Q3 Earnings Release
Zacks Investment Research | Oct 23, 2019 09:43PM ET
BP plc (LON:BP) (NYSE:BP) is set to report third-quarter 2019 results on Oct 29.
Let’s see how things are shaping up prior to the announcement.
Which Way are Estimates Headed?
Let’s take a look at the estimate revision trend to get a clear picture of what analysts feel about the company prior to the upcoming earnings release.
The Zacks Consensus Estimate for third-quarter earnings of 53 cents has seen no upward revision and three downward movements in the past 30 days. The figure suggests a year-over-year decline of 54%.
Further, the Zacks Consensus Estimate for revenues is pegged at $78.9 billion for the quarter, indicating a decline of 2.4% from the year-ago reported figure.
Factors to Consider
The crude pricing scenario through the September quarter of 2019 weakened year over year, acting as a major drag on BP’s upstream operations. Moreover, the company expects maintenance activities and seasonal turnaround to have hurt its third-quarter production. The integrated energy player also said that its upstream operations in the U.S. Gulf of Mexico were affected by Hurricane Barry in the quarter.
Weak oil prices have likely favored BP’s downstream business since the company could purchase raw crude at lower prices to produce refined petroleum products. However, lower demand for the company’s end products, owing to a slowdown in global economy, has probably hurt the company’s refining operations.
Earnings Whispers
Our proven model does not indicate an earnings beat for BP. The combination of a positive Zacks Investment Research
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