As Q2 earnings season draws to a close, the overall picture is becoming clearer. We note a sequential improvement in the quarter despite of a negative year-over-year growth in both earnings and revenues.
So far, 414 S&P 500 members, which account for 85.2% of the index’s total market capitalization, have reported their results. Total earnings for these companies are down 4.5% year over year due 1% decline in revenues. While 70.3% of these companies beat earnings per share (EPS) estimates, 55.6% surpassed top-line expectations (as of Aug 4).
Per the Earnings Trends report, the general outlook for the energy sector remains bearish as the sector has registered a massive 76.9% decrease in earnings due to a 24.4% plunge in revenues, both on year-over-year basis. Excluding the impact of the energy sector, the S&P 500 index would witness earnings decline of 0.7% as revenues inch up 2.3%.
With the remaining companies slated to report their results soon, let’s have a look at how some of these energy companies might fare this quarter.
Crescent Point Energy Corp. (TO:CPG) is slated to release Q2 results on Aug 10. Our proven model does not conclusively show that Crescent Point is likely to beat on earnings this quarter. This is because the company has a Zacks Rank #3 (Hold) but an Earnings ESP of 0.00%. Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 11 cents. Though stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a higher chance on beating on earnings, a 0.00% Earnings ESP makes surprise prediction difficult.
CRESCENT PT EGY Price and EPS Surprise
CRESCENT PT EGY Price and EPS Surprise | CRESCENT PT EGY Quote
Africa Oil Corp (OTC:AOIFF) is expected to release Q2 results on Aug 10. The company has a Zacks Rank #3 but an Earnings ESP of 0.00%. Despite the company’s favorable Zacks Rank, our surprise prediction is complicated by its 0.00% Earnings ESP.
AFRICA OIL CORP Price and EPS Surprise
AFRICA OIL CORP Price and EPS Surprise | AFRICA OIL CORP Quote
Ultra Petroleum Corp (OTC:UPLMQ) is set to release Q2 results on Aug 10. The company has a Zacks Rank #2 but an Earnings ESP of 0.00%, which makes surprise prediction inconclusive.
Ithaca Energy Inc (OTC:IACAF) is expected to release Q2 results on Aug 10. Our proven model does not conclusively show that Intercontinental Exchange is likely to beat on earnings this quarter. This is because the company has a Zacks Rank #3 but an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 19 cents.
CRESCENT PT EGY (CPG): Free Stock Analysis Report
AFRICA OIL CORP (AOIFF): Free Stock Analysis Report
ULTRA PETRO CP (UPLMQ): Free Stock Analysis Report
ITHACA ENERGY (IACAF): Free Stock Analysis Report
Original post
Zacks Investment Research