Hess Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hess (NYSE:HES) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. Hess is a global integrated energy company that explores and refines crude oil and natural gas.

Hess Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.28 per share, a rise of 9.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.47. Between one and three months ago, the average estimate moved down. It also has dropped from $1.40 during the last month. Analysts are projecting profit to rise by 1.7% compared to last year’s $5.98.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported a loss of 6 cents per share against a mean estimate of $1.19. Two quarters ago, it beat expectations by 23 cents with net income of $1.61.

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A Look Back: In the third quarter, profit rose 86.9% to $557 million ($1.64 a share) from $298 million (88 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 9.8% to $9.62 billion from $8.76 billion.

Here’s how Hess Corp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

hes

Wall St. Revenue Expectations: Analysts predict a rise of 21.1% in revenue from the year-earlier quarter to $9.63 billion.

Stock Price Performance: Between November 26, 2012 and January 24, 2013, the stock price had risen $8.54 (17.1%), from $49.90 to $58.44. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 14, 2012, when shares rose for eight straight days, increasing 13.7% (+$6.75) over that span. It saw one of its worst periods between May 2, 2012 and May 16, 2012 when shares fell for 11 straight days, dropping 18.1% (-$9.80) over that span.

Key Stats:

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 7.7% in the first quarter and 5.5% in the second quarter before climbing in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.04 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.12 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.8% to $7.85 billion while assets rose 2.9% to $8.16 billion.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)