APA (APA) Surpasses Q2 Earnings and Revenue Estimates

Core Viewpoint - APA reported quarterly earnings of $0.87 per share, significantly exceeding the Zacks Consensus Estimate of $0.45 per share, but down from $1.17 per share a year ago, indicating a +93.33% earnings surprise [1] - The company generated revenues of $2.61 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 26.08%, although this is a decrease from $2.79 billion in the same quarter last year [2] Group 1: Earnings Performance - APA's earnings surprise of +93.33% reflects a strong performance compared to expectations, following a previous quarter where it also exceeded estimates by +27.71% [1][2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped revenue estimates four times [2] Group 2: Stock Performance and Outlook - APA shares have declined approximately 19.5% year-to-date, contrasting with the S&P 500's gain of 7.1%, indicating underperformance in the market [3] - The company's current Zacks Rank is 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6] Group 3: Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $2.12 billion, while for the current fiscal year, the estimate is $2.92 on revenues of $8.97 billion [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which could influence future stock performance [6] Group 4: Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 27% of over 250 Zacks industries, which may impact APA's stock performance [8] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1, highlighting the importance of industry performance on individual stocks [8]