Murphy Oil Corporation MUR is expected to report a year-over-year decline in both top and bottom lines when it reports first-quarter 2026 results on May 6, after market close.
The Zacks Consensus Estimate for revenues is pinned at $688.6 million, indicating a decline of 3.44% from the year-ago reported figure. The consensus mark for earnings is pegged at 29 cents per share, indicating a year-over-year decline of 48.21%. The bottom-line estimate has gone up 514.29% over the past 60 days.
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What the Zacks Model Unveils
Our model does not predict an earnings beat for MUR this time around. 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 exactly the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: MUR has an Earnings ESP of +12.04%.
Zacks Rank: Murphy Oil currently holds a Zacks Rank #2.
Earnings Surprise by Others This Season
Some stocks from the same sector that have the combination of factors indicating an earnings beat are BKV Corporation BKV, Calumet Inc. CLMT and Pedevco PED. BKV carries a Zacks Rank #3, while CLMT and PED have a Zacks Rank #2 each. BKV, CLMT and PED currently have an Earnings ESP of +25%, +3.51% and +23.58%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Major Drivers Behind MUR’s Q1 Earnings Performance
Murphy Oil’s first-quarter total production is expected to be in the range of 164,000-172,000 barrels of oil equivalents per day (Boep/d). Nearly 93,400 Boep/d will come from Murphy Oil’s domestic operation in the Gulf of America and Eagle Ford shale. The first-quarter production guidance takes into consideration the downtime in the Gulf of America due to planned facility maintenance and maintenance of some onshore assets.
The company is expected to have benefited from the increase in commodity prices, resulting from the Middle East crisis. The company has also been reducing its operating expenses, which can also have a positive impact on first-quarter earnings.
Murphy Oil planned to bring 15 wells online in the Eagle Ford Shale, which are expected to have an impact on first-quarter earnings.
MUR’s Price Performance
MUR’s shares have gained 58.5% in the past six months compared with the industry’s growth of 38.5%.
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Murphy Oil Corporation (MUR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).