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What's in the Cards for Murphy Oil (MUR) in Q1 Earnings?

Murphy Oil Corporation MUR is slated to report first-quarter 2021 financial results on May 6, before the opening bell. The company has a trailing four-quarter earnings surprise of 19.43%, on average.

Let’s discuss the factors that are likely to reflect on the impending quarterly results.

Factors to Consider

Many wells of the company started production in the to-be-reported quarter, which is likely to leave a positive impact on its upcoming results. Moreover, to safeguard its interest against the current volatility in the market, it well-hedged its portfolio.

However, during the quarter, Murphy Oil voluntarily stopped production as a measure to withstand the winter storms. Reduced production volumes might adversely impact its upcoming earnings report.

Expectations

The Zacks Consensus Estimate for first-quarter 2021 sales is pegged at $461.43 million, indicating a decline of 23.49% from the year-ago quarter’s reported figure. The consensus estimate for first-quarter loss is pegged at 16 cents per share, implying a 46.67% improvement from the prior-year period’s reported loss.

The company expects first-quarter total crude oil production in the band of 149-157 thousand barrels of oil equivalents per day.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Murphy Oil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that is not the case here as you see below.
 

Murphy Oil Corporation Price and EPS Surprise

Murphy Oil Corporation price-eps-surprise | Murphy Oil Corporation Quote

Earnings ESP: Murphy Oil has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Murphy Oil currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

Centennial Resource Development, Inc. CDEV is set to release first-quarter 2021 results on May 4. It has an Earnings ESP of +21.88% and a Zacks Rank of 3, presently.

Comstock Resources, Inc. CRK is set to release first-quarter 2021 results on May 4. It has an Earnings ESP of +6.34% and a Zacks Rank of 3, presently.

Evolution Petroleum Corporation, Inc. EPM is set to release third-quarter fiscal 2021 results on May 10. It has an Earnings ESP of +42.86% and is currently a #3 Ranked player.

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Comstock Resources, Inc. (CRK): Free Stock Analysis Report
 
Murphy Oil Corporation (MUR): Free Stock Analysis Report
 
Evolution Petroleum Corporation, Inc. (EPM): Free Stock Analysis Report
 
Centennial Resource Development, Inc. (CDEV): Free Stock Analysis Report
 
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