Hess Corp Earnings Cheat Sheet: Margins Expand and Profit Climbs

S&P 500 (NYSE:SPY) component Hess Corporation (NYSE:HES) reported higher profit for the second quarter as revenue showed growth. Hess Corporation is a global integrated energy company that explores and refines crude oil and natural gas.

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Hess Earnings Cheat Sheet for the Second Quarter

Results: Net income for Hess Corporation rose to $607 million ($1.78 per share) vs. $375 million ($1.15 per share) in the same quarter a year earlier. This marks a rise of 61.9% from the year earlier quarter.

Revenue: Rose 26.8% to $9.81 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HES fell short of the mean analyst estimate of $1.97 per share. It fell short of the average revenue estimate of $10.12 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 14.1% to $10.56 billion in the first quarter. The figure rose 4.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 3 cents in the first quarter and by 2 cents in the fourth quarter of the last fiscal year.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 72.7% from the year earlier.

Gross margins grew 6.9 percentage points to 30.2%. The growth seemed to be driven by increased revenue, as the figure rose 26.8% from the year earlier quarter while costs rose 15.4%.

Competitors to Watch: Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), Marathon Oil Corporation (NYSE:MRO), ConocoPhillips (NYSE:COP), BP plc (NYSE:BP), TOTAL S.A. (NYSE:TOT), Repsol YPF, S.A. (REPYY), Occidental Petroleum Corp. (NYSE:OXY), and China Petroleum & Chemical Corp. (NYSE:SNP).

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(Source: Xignite Financials)

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