APA Corporation Q2 Earnings on Deck: Here's How It Will Fare

APA Corporation APA is set to release second-quarter results on Aug. 6. The bottom-line estimate for the to-be-reported quarter is pegged at a profit of 45 cents on revenues of $2.07 billion.Let us delve into the factors that might have influenced this upstream operator’s results in the quarter. However, it is worth taking a look at APA’s previous-quarter performance first.Highlights of Q1 Earnings & Surprise HistoryIn the last reported quarter, the independent oil and gas explorer beat the consensus mark due to better-than-expected production volumes and commodity prices. APA reported adjusted earnings per share of $1.06, which beat the Zacks Consensus Estimate of 83 cents. Revenues of $2 billion also beat the Zacks Consensus Estimate by 37.3%.The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed in the other two, resulting in an average surprise of 7.35%.This is depicted in the graph below: APA Corporation Price and EPS Surprise APA Corporation price-eps-surprise | APA Corporation QuoteTrend in Estimate RevisionThe Zacks Consensus Estimate for second-quarter earnings has remained unchanged in the past seven days. The estimated figure indicates a 61.54% decline year over year. The Zacks Consensus Estimate for revenues indicates a 25.80% year-over-year deterioration.Factors to Consider Ahead of APA’s Q2 ReleaseAPA is an independent oil and gas exploration and production company. It is involved in locating, developing and extracting crude oil, natural gas and natural gas liquids. The company operates primarily in the United States, Egypt and the North Sea, with emerging exploration interests in Suriname. APA makes money by selling the produced hydrocarbons and its revenue depends largely on production volumes and market prices for oil and gas.APA's revenues are likely to have suffered in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is down from the year-ago quarter’s $2.54 billion.  According to our model, revenues from the company’s core oil, natural gas and natural gas liquids segment are predicted to drop 31.4% year over year. Additionally, APA is likely to see a 10.3% decline in revenues from purchased oil and gas sales, further weighing on its top line for the quarter.The reduction in APA's costs is also likely to have boosted its bottom line. The company’s total expenses are likely to reach $1.52 billion in the second quarter, down 18.5% from the year-ago period’s level. Notably, lease operating expenses are expected to dip slightly from $489.6 million to $460 million. Gathering, processing and transmission costs are likely to follow suit, falling from $121 million to $105.1 million. The cost of purchased oil and gas is also expected to have shown a substantial reduction, dropping from $210 million to $156.9 million over the same timeframe.What Does Our Model Say About APA?The proven Zacks model does not conclusively predict an earnings beat for APA this season. 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. This is not the case here.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.APA’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%.APA’s Zacks Rank:  APA currently carries a Zacks Rank #3.Stocks to ConsiderHere are some firms from the other space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.Plains Group PAGP has an Earnings ESP of +50.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is set to release its earnings on Aug. 8. With a current market capitalization of roughly $3.80 billion, Plains Group has seen a 7.3% increase in its stock price over the last 12 months. Plains Group, which operates as Plains All American Pipeline, L.P., is a master limited partnership that owns and operates midstream energy infrastructure. The company specializes in providing logistics services for crude oil, natural gas liquids and natural gas, with an extensive network of pipelines, storage facilities and terminals across the United States and Canada.fuboTV FUBO has an Earnings ESP of +7.14% and a Zacks Rank #2. The company is set to release its earnings on Aug. 8.fuboTV is an American over-the-top sports streaming television service that delivers live TV over the internet. The company, which markets as a "sports-first" service, also offers a wide array of news and entertainment channels, making it a viable alternative to traditional cable television.  fuboTV has delivered impressive returns, with its shares soaring 186.2% in the past year, pushing market value to approximately $1.28 billion.Calumet, Inc. CLMT has an Earnings ESP of +49.62% and a Zacks Rank #3. The company is set to release its earnings on Aug. 8. Calumet, currently valued at around $1.34 billion, has seen its stock price increase by 35.2% over the last 12 months.It is a publicly traded company that specializes in manufacturing a diverse range of specialty branded products and renewable fuels. Headquartered in Indianapolis, IN, Calumet produces a range of products, including lubricating oils, solvents, waxes and synthetic materials, for various consumer and industrial markets.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report APA Corporation (APA): Free Stock Analysis Report Calumet, Inc. (CLMT): Free Stock Analysis Report Plains Group Holdings, L.P. (PAGP): Free Stock Analysis Report fuboTV Inc. (FUBO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks