Major Commodity Earnings This Week: Big Oil On Tap

As earnings season draws to a close, the commodity world will see, arguably, its most publicized week. The next five days will feature earnings from some of the biggest oil firms in the world, with a few other companies sprinkled in. Investors will be especially keen to see how the recent spike in oil prices has impacted these major producers. Below, we outline some of the most prominent commodity firms slated to report earnings this week [for more commodity news and analysis subscribe to our free newsletter].

  • Plum Creek Timber (PCL): After market close today, one of the most popular timber firms will announce earnings. Plum Creek, which is the largest private landowner in the U.S., is expected to show EPS of 23 cents with revenues eclipsing the $300 million mark.
  • British Petroleum (BP): Still wrestling with costs from the 2010 Deepwater Horizon spill, BP’s earnings will be especially crucial for investors looking for any sign of weakness in the company in Tuesday’s report. Analysts are expecting EPS of $1.13 with revenues of just over $62 billion. It should be noted that the company is expected to give weak guidance, which could punish the stock during trading.
  • Oil WellPhillips 66 (PSX): Phillips will report earnings at 8 AM EST on Wednesday, just prior to the opening bell. Analysts will be looking for EPS of $1.91 and revenues just shy of $42 billion. Though PSX has beaten its last four earnings marks, the company is expected to show weaker sales for the next year, which may lead to negative investor sentiment [see also USA Oil Reserves: The World’s Largest?].
  • Chesapeake Energy Corp (CHK): Chesapeake will kick off a busy Thursday by reporting earnings before markets open. The Street is expecting the firm to show EPS of 40 cents and revenues just over $3.1 billion. CHK has nailed their last three estimates and while sales growth is expected to be weak this quarter, guidance for the year is expected to show an expansion.
  • ConocoPhillips (COP): Also reporting before the opening bell Thursday will be the Houston-based ConocoPhillips. COP will try to hit its EPS mark of $1.29 as well as revenue expectations of $12.8 billion. Like BP, COP is predicted to show weak guidance as far as sales growth is concerned, so keep a keen eye on that element of the report.
  • Exxon Mobil (XOM): In the midst of a tight-knit battle with Apple for the largest company in the world, Exxon will be one of the most-watched reports of the week. Prior to market open Thursday, XOM is expected to show EPS of $1.9 with revenues over $105 billion. There appears to be an unfortunate theme in the world of big oil as far as sales contraction expectations are concerned, and Exxon is no exception [see also 25 Ways To Invest In Crude Oil].
  • Chevron Corp (CVX): With Chevron’s stock sitting near 52-week highs, it may very well be the most talked-about report of the week. Prior to market open on Friday, CVX is expected to show EPS of $2.98 and revenues just over $56 billion. Like its peers, the plague of sales contractions is expected to infect this major producer, so be sure to pay close attention to any comments regarding that matter.

The Bottom Line

As we have stated before, earnings reports are crucial on two different levels: the numbers and the guidance. A great report can be overshadowed by weak guidance, which appears to be a major fear concerning the world’s largest oil firms. At the same time, an earnings miss with a strong outlook could still result in a stock trading higher. Be sure to pay close attention to both facets of each report in order to properly trade and react to the news.

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Disclosure: Long BP, XOM.

This entry was posted in Agriculture, Brent Oil, Data Releases, Earnings, Energy, MLPs, Natural Gas, Timber, WTI and tagged , , , , , , . Bookmark the permalink.

Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

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