Seadrill Limited SDRL is set to report third-quarter 2026 results on Nov. 3, after market close.
Let us delve into the factors that are likely to have influenced the performance of this leading offshore driller. However, before that, it would be worth reviewing SDRL’s performance in the previous quarter.
SDRL’s Highlights of Q2 Earnings & Surprise History
In the last reported quarter, Seadrill’s earnings of 47 cents per share beat the Zacks Consensus Estimate of 29 cents. SDRL’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing the other twice, delivering an average surprise of -10.47%. This is depicted in the graph below:
Seadrill Limited Price and EPS Surprise
Seadrill Limited Price and EPS Surprise
Seadrill Limited price-eps-surprise | Seadrill Limited Quote
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 20 cents, with one upward and no downward revisions over the past 30 days. The bottom-line estimate implies an improvement of 217.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $382 million, indicating a year-over-year improvement of 5.2%.
Factors to Note for SDRL
Seadrill provides offshore drilling services to the oil and gas industry. The company is expected to have delivered stable performance in the third quarter, supported by increasing upstream activity and offshore investments. The commodity pricing environment remained favorable for upstream companies to increase drilling activity during the quarter.
Per data from the U.S. Energy Information Administration, the West Texas Intermediate spot crude averaged $80.46 per barrel in July and $83.90 per barrel in August, further increasing to $97.31 per barrel in September. Rising exploration activity and SDRL’s strong backlog are expected to have contributed positively to its earnings.
However, challenges are likely to have loomed, particularly due to inflation in labor and material costs, which is expected to have increased operating expenses and weighed on its profits in the to-be-reported quarter. These factors are likely to have affected the offshore driller’s financial performance in the third quarter.
SDRL’s Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Seadrill this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: Seadrill’s Earnings ESP is -17.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some better-ranked stocks that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
EOG Resources EOG has an Earnings ESP of +0.79% and a Zacks Rank #2 at present. EOG is scheduled to release third-quarter 2026 earnings on Nov. 5.
The Zacks Consensus Estimate for its earnings is pegged at $4.45 per share, suggesting a 64.2% improvement from the prior-year reported figure.
BP plc BP has an Earnings ESP of +7.13% and a Zacks Rank #1. It is scheduled to release third-quarter 2026 earnings on Oct. 30.
The Zacks Consensus Estimate for BP’s earnings is pegged at $2.66 per share, suggesting a 212.9% increase from the prior-year reported figure.
ConocoPhillips COP has an Earnings ESP of +4.50% and a Zacks Rank #1. It is scheduled to release third-quarter 2026 earnings on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for COP’s earnings is pegged at $2.97 per share, suggesting an 84.5% increase from the prior-year reported figure.
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Seadrill Limited (SDRL) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
