From Nasdaq MarketSite: 2025-05-02 09:24:00

The first quarter of 2025 earnings season is here, with a focus on the oil/energy sector. Despite challenges, some energy companies are poised for earnings surprises, potentially boosting their stock prices. Oil prices dipped, while U.S. natural gas prices rose, impacting sector performance.

S&P 500 energy firms are expected to report a 12.9% earnings drop and a 0.3% revenue decline. However, with cost management and a focus on natural gas, some companies could exceed expectations this season. While the sector faces challenges, certain firms show resilience and potential for upside surprises.

Energy sector earnings are expected to decline, impacting the overall market growth. Despite this, efficient operations and exposure to natural gas are helping some companies buck the trend and potentially deliver earnings surprises. The sector’s performance will be crucial for market dynamics in the coming months.

Energy Transfer (ET) and MPLX LP are two companies to watch in the midstream space, both with a +9.23% Earnings ESP and a Zacks Rank #3. Energy Transfer is scheduled to report on May 6, while MPLX LP will release earnings on the same day. These companies have potential for positive surprises this quarter.

Pembina Pipeline Corp. and ConocoPhillips are also worth monitoring. Pembina Pipeline has an Earnings ESP of +2.93% and a Zacks Rank #3, reporting on May 8. ConocoPhillips, with an Earnings ESP of +2.76% and a Zacks Rank #3, is set to release earnings on the same day. Both companies have a history of meeting or surpassing expectations.

Investors seeking potential outperformers in the energy sector can look to these companies for earnings surprises. Energy firms like ET, MPLX, Pembina Pipeline, and ConocoPhillips show promise in a challenging market environment. Their performance this earnings season could offer insights into the sector’s future trajectory.



Read more at Nasdaq MarketSite:: 4 Energy Firms Likely to Outperform Q1 Earnings Estimates