Talos Energy TALO is set to report third-quarter 2026 results on Nov. 3, after the closing bell.
Let us delve into the factors that are likely to have influenced the performance of this independent exploration and production player. However, before that, it would be worth reviewing TALO’s performance in the previous quarter.
TALO’s Highlights of Q2 Earnings & Surprise History
In the last reported quarter, Talos’ earnings of 57 cents per share beat the Zacks Consensus Estimate of 34 cents. The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, missing once and delivering an average surprise of 18.16%. This is depicted in the graph below:
Talos Energy Inc. Price and EPS Surprise
Talos Energy Inc. Price and EPS Surprise
Talos Energy Inc. price-eps-surprise | Talos Energy Inc. Quote
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 48 cents, with one upward and one downward revision over the past 30 days. The bottom-line estimate implies an improvement of 352.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $567.1 million, indicating a year-over-year improvement of 26%.
Factors to Note for TALO
Talos Energy is an independent exploration and production player, primarily involved in offshore development in the U.S. Gulf and Mexico. The company is expected to have delivered stable performance in the third quarter. Being an upstream energy company, its performance is mainly driven by its production and the commodity pricing environment.
The commodity pricing scenario has remained favorable for upstream companies during the to-be-reported 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. This is likely to have positively impacted TALO’s earnings and profitability in the to-be-reported quarter.
However, challenges are likely to have loomed, particularly due to inflation in costs, which may have increased operating expenses and weighed on its profits in the to-be-reported quarter. These factors are likely to have affected the upstream company’s financial performance in the third quarter.
TALO’s Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Talos 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: Talos’ Earnings ESP is 0.00%. 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 other stocks that you may want to consider, as these, have the right combination of elements to post an earnings beat this reporting cycle.
ConocoPhillips COP has an Earnings ESP of +3.74% 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 $2.95 per share, suggesting an 83.2% increase from the prior-year reported figure.
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.
Occidental Petroleum OXY currently has an Earnings ESP of +4.14% and a Zacks Rank #2. OXY is scheduled to release third-quarter earnings on Nov. 9.
The Zacks Consensus Estimate for OXY’s earnings is pegged at $1.43 per share, indicating a 123.4% increase from the prior-year reported figure.
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Talos Energy Inc. (TALO) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : 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.
