Yahoo Finance How Did Hess’s Stock React to 1Q16 Earnings?
Did Hess Beat Earnings and Revenue Estimates in 1Q16?
Hess’s stock performance
Following Hess’s (HES) 1Q16 earnings release, its stock fell ~3%. Hess’s stock has fallen 18.5% YoY (year-over-year). In the following graph, we analyze Hess’s stock performance with respect to movements in the broader industry and the broader Market.
Hess’s peers Apache (APA), Concho Resources (CXO), and Cimarex Energy (XEC) have seen their stock prices fall ~14%, 2.8%, and ~6.5%, respectively, on a YoY basis. These companies account for ~4% of the Vanguard Energy ETF (VDE).
In the above graph, it’s clear that Hess’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices and natural gas prices.
From April 13 to April 27, Hess’s stock overperformed the Energy Select Sector SPDR Fund (XLE). Hess’s stock rose 8% during this period, while XLE rose 6.8%. Hess’s stock also outperformed the SPDR S&P 500 ETF (SPY), which mostly remained flat during this period.
Following Hess’s 1Q16 earnings release on April 27, its stock fell on the day, despite crude oil prices rising ~2.7% from the previous day’s close. This goes to show that the Market’s reaction to Hess’s earnings release wasn’t positive. Hess’s stock likely fell as a result of its revenue miss. Read the first part of this series to learn more about Hess’s 1Q16 performance.
In the next part of this series, we’ll look at analysts’ recommendations for Hess’s stock.
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