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Can Murphy Oil Corporation (MUR) Keep the Earnings Streak Alive This Quarter?

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Murphy Oil Corporation MUR, a firm in the Oil & Gas - US Exploration & Production industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, MUR has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, MUR expected to post a loss of 95 cents per share, while it actually posted a loss of 72 cents per share, a beat of 24.2%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of $1.15 cents per share, when it actually saw loss of 76 cents per share instead, representing a 33.9% surprise.

Thanks in part to this history, recent estimates have been moving higher for Murphy Oil. In fact, the Earnings ESP for MUR is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for MUR as the firm currently has a Zacks Earnings ESP of 36.67% so another beat could be around the corner.

This is particularly true when you consider that MUR has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that MUR could see another beat at its next report, especially if recent trends are any guide.

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MURPHY OIL (MUR): Free Stock Analysis Report
 
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