Earnings Preview: ConocoPhillips (COP) Q2 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for ConocoPhillips despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - ConocoPhillips is expected to report quarterly earnings of $1.36 per share, reflecting a year-over-year decrease of 31.3% [3][19]. - Revenue projections stand at $14.93 billion, indicating a 5.6% increase from the previous year [3][19]. Estimate Revisions - The consensus EPS estimate has been revised upward by 12.85% over the last 30 days, indicating a reassessment by analysts [4][19]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12][19]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [9][10]. - ConocoPhillips currently holds a Zacks Rank of 3 (Hold), complicating predictions of an earnings beat [12][20]. Historical Performance - In the last reported quarter, ConocoPhillips exceeded the expected earnings of $2.06 per share, achieving $2.09, resulting in a surprise of +1.46% [13]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [14][20]. Conclusion - While ConocoPhillips does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17][20].