HP Helmerich and Payne Inc

Tulsa, OK-based contract drilling services provider Helmerich & Payne Inc. (HP) is set to release its second quarter fiscal 2014 results (three months ended Mar 31, 2014) before the opening bell on Thursday, Apr 24.

In the preceding three-month period, Helmerich & Payne delivered a positive 7.59% earnings surprise. We expect the company to beat expectations in the second quarter as well.

Why a Likely Positive Surprise?

Our proven model conclusively shows that Helmerich & Payne is likely to beat earnings this quarter because it has the right combination of two key ingredients.

Positive Zacks ESP: The Earnings ESP (Expected Surprise Prediction), which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.68%. This is a meaningful and leading indicator of a likely positive earnings surprise.

Zacks Rank #1 (Strong Buy): Note that stocks with Zacks Rank #1, #2 and #3 have a significantly higher chance of beating earnings estimates. We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revision momentum.

The combination of Helmerich & Payne’s Zacks Rank #1 (Strong Buy) and an earnings ESP of +0.68% make us confident of an earnings beat on Apr 24.

What will Drive the Better-than-Expected Earnings?

Helmerich & Payne is a leading drilling contractor with activities in the U.S. and overseas. In particular, the company’s technologically-advanced FlexRigs continues to benefit from an upswing in U.S. land drilling activity and the shift to complex onshore plays that require highly intensive solutions.

Other Stocks to Consider

Helmerich & Payne is not the only company looking up this earnings season. We also see likely earnings beats coming from these companies in the energy sector:

Pioneer Energy Services Corp. (PES) has an Earnings ESP of +40.00% and holds a Zacks Rank #1 (Strong Buy). Pioneer Energy Services Partners will report first quarter earnings on Apr 29.

Phillips 66 Partners L.P. (PSXP) has an Earnings ESP of +14.82% and holds a Zacks Rank #1 (Strong Buy). Phillips 66 Partners will report first quarter earnings on Apr 30.

Unit Corp. (UNT) has an Earnings ESP of +1.80% and holds a Zacks Rank #1 (Strong Buy). Unit Corp. will report first quarter earnings on May 8.

 
HELMERICH&PAYNE (HP): Free Stock Analysis Report
 
PIONEER EGY SVC (PES): Free Stock Analysis Report
 
PHILLIPS 66 PTR (PSXP): Free Stock Analysis Report
 
UNIT CORP (UNT): Free Stock Analysis Report
 
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