Erste Group Bank Has Negative Outlook for BP FY2027 Earnings

BP p.l.c. (NYSE:BP) – Stock analysts at Erste Group Bank dropped their FY2027 EPS estimates for BP in a research note issued on Wednesday, July 15th. Erste Group Bank analyst H. Engel now forecasts that the oil and gas exploration company will post earnings of $3.96 per share for the year, down from their prior estimate of $4.02. The consensus estimate for BP’s current full-year earnings is $5.24 per share.

BP (NYSE:BP) last announced its quarterly earnings results on Tuesday, April 28th. The oil and gas exploration company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $0.24. The company had revenue of $52.26 billion during the quarter, compared to the consensus estimate of $48.50 billion. BP had a net margin of 1.62% and a return on equity of 12.06%. The company’s revenue for the quarter was up 11.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.53 earnings per share.

A number of other brokerages have also commented on BP. Weiss Ratings reissued a “hold (c-)” rating on shares of BP in a research note on Thursday, June 18th. Wells Fargo & Company raised their price objective on shares of BP from $39.00 to $54.00 and gave the company an “equal weight” rating in a report on Thursday, April 9th. Argus upgraded shares of BP from a “hold” rating to a “buy” rating and set a $50.00 target price on the stock in a research report on Monday, May 11th. Zacks Research cut shares of BP from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 25th. Finally, TD Cowen raised their price target on shares of BP from $40.00 to $41.00 and gave the company a “hold” rating in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $46.64.

BP Price Performance

Shares of BP opened at $41.91 on Friday. The company has a quick ratio of 0.87, a current ratio of 1.22 and a debt-to-equity ratio of 0.68. The stock has a market cap of $109.75 billion, a PE ratio of 34.92, a PEG ratio of 0.76 and a beta of 0.17. BP has a 12-month low of $31.58 and a 12-month high of $48.27. The business has a 50-day simple moving average of $41.39 and a two-hundred day simple moving average of $41.05.

BP Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, May 15th were issued a dividend of $0.4992 per share. The ex-dividend date was Friday, May 15th. This represents a $2.00 annualized dividend and a yield of 4.8%. BP’s dividend payout ratio (DPR) is presently 165.00%.

Institutional Investors Weigh In On BP

Institutional investors have recently modified their holdings of the company. Sound Shore Management Inc. CT bought a new position in BP during the fourth quarter worth $67,890,000. Public Employees Retirement System of Ohio bought a new stake in BP during the first quarter valued at $28,136,000. New York State Common Retirement Fund acquired a new stake in BP during the 4th quarter worth about $17,768,000. Sagefield Capital LP raised its position in shares of BP by 125.2% in the 4th quarter. Sagefield Capital LP now owns 493,556 shares of the oil and gas exploration company’s stock worth $17,141,000 after acquiring an additional 274,381 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in shares of BP by 20.7% in the 1st quarter. Bank of New York Mellon Corp now owns 432,646 shares of the oil and gas exploration company’s stock valued at $20,334,000 after purchasing an additional 74,243 shares during the period. 11.01% of the stock is owned by institutional investors.

BP News Roundup

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP is expected to announce billions of dollars of new investments in Iraq alongside ConocoPhillips, a move that could expand BP’s upstream footprint and support long-term production growth. BP, ConocoPhillips to back Iraq with major investment as U.S. seeks to cut Iran’s energy hold
• Positive Sentiment: Citi says BP’s biggest turnaround opportunity is in reshaping its upstream oil and gas business, reinforcing the view that the company is moving away from its prior renewables-heavy strategy. BP’s big opportunity is in its upstream oil and gas business – analyst
• Positive Sentiment: BP and ConocoPhillips are also tied to a broader redevelopment effort in Iraq’s Kirkuk oilfields, adding another upstream catalyst for BP. ConocoPhillips to buy 42% stake in BP unit tied to Iraq’s Kirkuk oilfields
• Neutral Sentiment: BP is shutting down BP Ventures and selling most minority holdings in its venture portfolio, a portfolio-optimization and deleveraging move that may improve focus but also signals a pullback from some growth bets. Oil giant BP shutters its corporate venture arm after 20 years
• Neutral Sentiment: Erste Group trimmed its FY2027 EPS estimate for BP slightly, which is a mild headwind but not a major change versus the broader earnings outlook. BP, ConocoPhillips to back Iraq with major investments, CNBC reports
• Negative Sentiment: The lower earnings estimate adds some caution around BP’s near-term profit trajectory, even though it remains below consensus only modestly. BP, ConocoPhillips to back Iraq with major investments, CNBC reports

About BP

BP plc is a British multinational integrated energy company headquartered in London. Originating in the early 20th century as the Anglo-Persian Oil Company, BP has grown into one of the world’s largest oil and gas companies, operating across exploration and production, refining and marketing, trading, and a range of low-carbon businesses.

The company’s core activities include upstream exploration and production of crude oil and natural gas, midstream and trading operations, and downstream refining, marketing and supply of fuels, lubricants and petrochemicals.