Hess Third Quarter Earnings

Hess (NYSE:HES) announced its results for the most recent quarter on November 2, 2012. Hess is a global integrated energy company that explores and refines crude oil and natural gas.

Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Everything Investors Need To Know About Earnings

The Numbers: Hess' latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $1.64 per share versus the $1.19 per share estimate and revenues of $9.62 billion versus the $8.71 billion estimate. EPS rose 86.4% while revenue climbed 10.2% from the same period last year. The company's net income for the quarter was $557 million. This is 86.9% higher than the year-ago quarter.



Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.37 a share to $1.47 over the last 90 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year has seen a bump from $5.78 per share 60 days ago to $5.88.