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Can Whiting Petroleum (WLL) Pull a Surprise in Q4 Earnings?

Domestic oil and gas explorer Whiting Petroleum Corp.WLL is set to release fourth-quarter 2016 results after the closing bell on Tuesday, Feb 21.

In the preceding three-month period, the company delivered a negative earnings surprise of 23.68%. The company's earnings surprise history is disappointing as it missed estimates in all of the last four quarters with an average negative surprise of 33.14%.

Let's see how things are shaping up for this announcement.

Factors to Consider This Quarter

Crude oil, which is a major determinant of global economic growth, was extremely volatile in 2016. The fluctuation in the cost of the commodity made the markets extremely risky and investors jittery. Hence, we believe that the dismal crude pricing scenario will continue to weigh on Whiting Petroleum's bottom line.

Whiting Petroleum Corporation Price and EPS Surprise

Whiting Petroleum Corporation Price and EPS Surprise | Whiting Petroleum Corporation Quote

However, efficiencies on the production front might be able to mitigate some of the damage. The company expects to maintain a flat production profile in the upcoming few quarters despite asset sales.

Moreover, Whiting Petroleum has been able to reduce costs, which should provide some buffer amid tumbling commodity prices.

Earnings Whispers

Our proven model does not conclusively show that Whiting Petroleum will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat the consensus mark. That is not the case here as you will see below.

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 33 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter .

Zacks Rank: Whiting Petroleum has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company's Earnings ESP of 0.00% makes surprise prediction difficult.

We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

While earnings beat looks uncertain for Whiting Petroleum, here are some firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter.

W&T Offshore, Inc. WTI is expected to release fourth-quarter earnings results on Mar 14. The company has an Earnings ESP of +73.91% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Sprague Resources LP SRLP has an Earnings ESP of +3.64% and a Zacks Rank #2. The partnership is anticipated to release fourth-quarter earnings on Mar 9.

Pioneer Natural Resources Company PXD has an Earnings ESP of +10.00% and a Zacks Rank #2. The company is likely to release fourth-quarter earnings on Feb 7.

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Pioneer Natural Resources Company (PXD): Free Stock Analysis Report

W&T Offshore, Inc. (WTI): Free Stock Analysis Report

Whiting Petroleum Corporation (WLL): Free Stock Analysis Report

Sprague Resources LP (SRLP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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