APA Corporation Q2 Earnings on Deck: Here's How It Will Fare\n\nAPA 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.\n\nLet 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.\n\nHighlights of Q1 Earnings & Surprise History\n\nIn 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%.\n\nThe 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%.\n\nThis is depicted in the graph below:\n\nAPA Corporation Price and EPS Surprise\n\nAPA Corporation Price and EPS Surprise\n\nAPA Corporation price-eps-surprise | APA Corporation Quote\n\nTrend in Estimate Revision\n\nThe 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.\n\nFactors to Consider Ahead of APA’s Q2 Release\n\nAPA 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.\n\nAPA'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.\n\nThe 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.\n\nWhat Does Our Model Say About APA?\n\nThe 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.\n\nYou can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.\n\nAPA’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%.\n\nAPA’s Zacks Rank: APA currently carries a Zacks Rank #3.\n\nStocks to Consider\n\nHere 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.\n\nPlains 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.\n\nThe 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.\n\nfuboTV FUBO has an Earnings ESP of +7.14% and a Zacks Rank #2. The company is set to release its earnings on Aug. 8.\n\nfuboTV 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.\n\nCalumet, 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.\n\nIt 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.\n\nWant 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\n\nAPA Corporation (APA) : Free Stock Analysis Report\n\nCalumet, Inc. (CLMT) : Free Stock Analysis Report\n\nPlains Group Holdings, L.P. (PAGP) : Free Stock Analysis Report\n\nfuboTV Inc. (FUBO) : Free Stock Analysis Report\n\nThis article originally published on Zacks Investment Research (zacks.com).

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

APA Corporation is set to release second-quarter earnings results on August 6, with a profit estimate of 45 cents on revenues of $2.07 billion. The company outperformed in Q1, beating earnings estimates by 7.35% on higher production and commodity prices. Analysts predict Q2 revenues will decline year-over-year, though costs are expected to drop, potentially improving margins. The article also highlights other companies like Plains Group, fuboTV, and Calumet with positive earnings outlooks.