Analyst are expecting a year-over-year decrease in earnings per share and revenue for the quarter ended June 2015.
Analysts have estimated that the company will report a loss of 72 cents per share on revenue of $1.58 billion for the quarter.
Last year, the oil and natural gas company reported adjusted earnings of $1.38 per diluted share on revenue of $3.6 billion for the 2014 second quarter.
Shares of Hess are trading higher by 2.60% to $59.18 on Tuesday, after oil prices recovered slightly.
WTI crude is up by 1.67% to $48.18 a barrel, while Brent crude is rising by 0.43% to $53.70 per barrel today, according to the CNBC.com index.
Separately, TheStreet Ratings team rates HESS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HESS CORP (HES) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HES's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
- 46.68% is the gross profit margin for HESS CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, HES's net profit margin of -25.29% significantly underperformed when compared to the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, HESS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Net operating cash flow has significantly decreased to $362.00 million or 68.73% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: HES Ratings Report