Erste Group Bank Issues Optimistic Estimate for BP Earnings

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for BP to $6.06 from $6.00, though the estimate remains below the $6.45 analyst consensus; it projects FY2027 EPS of $4.20.
• BP’s latest quarterly results exceeded expectations, with EPS of $2.22 versus the $1.87 consensus and revenue of $69.11 billion, up 106.1% year over year.
• BP has a “Moderate Buy” consensus rating and recently increased its quarterly dividend to $0.5196, implying an annualized yield of about 4.5%; however, the company continues to face labor risk from the prolonged Whiting refinery lockout.

BP p.l.c. (NYSE:BP - Free Report) - Stock analysts at Erste Group Bank upped their FY2026 EPS estimates for shares of BP in a report issued on Tuesday, September 8th. Erste Group Bank analyst H. Engel now forecasts that the oil and gas exploration company will post earnings per share of $6.06 for the year, up from their prior estimate of $6.00. The consensus estimate for BP's current full-year earnings is $6.45 per share. Erste Group Bank also issued estimates for BP's FY2027 earnings at $4.20 EPS.

BP (NYSE:BP - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The oil and gas exploration company reported $2.22 EPS for the quarter, beating analysts' consensus estimates of $1.87 by $0.35. BP had a return on equity of 16.63% and a net margin of 2.49%.The business had revenue of $69.11 billion during the quarter, compared to the consensus estimate of $57.89 billion. During the same quarter in the previous year, the firm earned $0.90 earnings per share. BP's revenue for the quarter was up 106.1% compared to the same quarter last year.

BP has been the topic of a number of other research reports. Morgan Stanley reaffirmed an "overweight" rating on shares of BP in a research note on Friday, September 4th. Weiss Ratings raised BP from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, August 5th. Freedom Capital upgraded BP from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 6th. Piper Sandler increased their target price on BP from $43.00 to $46.00 and gave the company a "neutral" rating in a research report on Thursday, September 3rd. Finally, Wall Street Zen raised BP from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, BP presently has a consensus rating of "Moderate Buy" and a consensus target price of $46.59.

BP Trading Up 0.9%

Shares of BP opened at $46.11 on Friday. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.95 and a current ratio of 1.27. BP has a 52-week low of $32.72 and a 52-week high of $48.27. The firm has a market cap of $120.78 billion, a price-to-earnings ratio of 22.49, a PEG ratio of 0.58 and a beta of 0.15. The business's fifty day moving average is $42.57 and its 200-day moving average is $42.95.

Hedge Funds Weigh In On BP

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. lifted its stake in shares of BP by 15.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 1,410,714 shares of the oil and gas exploration company's stock valued at $52,307,000 after buying an additional 192,211 shares in the last quarter. Readystate Asset Management LP grew its stake in BP by 322.4% in the 2nd quarter. Readystate Asset Management LP now owns 619,670 shares of the oil and gas exploration company's stock valued at $22,897,000 after buying an additional 472,974 shares in the last quarter. Kahn Brothers Group Inc. bought a new stake in BP during the 2nd quarter valued at $23,094,000. Global Retirement Partners LLC purchased a new stake in shares of BP during the second quarter worth $1,592,000. Finally, denkapparat Operations GmbH bought a new position in shares of BP in the second quarter worth $1,351,000. 11.01% of the stock is owned by institutional investors and hedge funds.

BP Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, August 14th will be issued a $0.5196 dividend. The ex-dividend date is Friday, August 14th. This is a positive change from BP's previous quarterly dividend of $0.50. This represents a $2.08 dividend on an annualized basis and a yield of 4.5%. BP's dividend payout ratio (DPR) is currently 100.49%.

BP News Roundup

Here are the key news stories impacting BP this week:

• Positive Sentiment: Zacks upgrade: Zacks Research upgraded BP from “Hold” to “Strong Buy,” reinforcing the view that the stock offers attractive value at its current valuation. BP was also included in Zacks’ Strong Buy lists for value, growth, income, momentum, and overall stock selection. New Strong Buy Stocks for September 9th
• Positive Sentiment: Oil-price and valuation appeal: Zacks described BP as one of the better ways to gain exposure to high oil prices without paying a premium multiple. Its latest quarterly results also exceeded earnings and revenue expectations, with revenue more than doubling from the prior-year period. Why BP Is One of the Best Oil Stocks to Buy Right Now
• Positive Sentiment: Potential North Sea asset interest: Reports that prospective buyers may be interested in BP’s North Sea operations could create the possibility of asset-sale proceeds, portfolio simplification, or improved capital returns, although no transaction has been confirmed. BP North Sea Operations Garner Interest From Potential Buyers
• Neutral Sentiment: Gulf of Mexico development: Shell acquired a 30% working interest in Conifer, a BP-operated exploration prospect near the Kaskida development. The deal validates the project’s potential, while BP retains operatorship and exposure to future development upside. Could Shell’s Superior Cash Flow Make It a Better Bet Than BP?
• Negative Sentiment: Whiting refinery labor dispute: A lockout at BP’s Whiting refinery is approaching six months as the company and the union remain at odds, maintaining operational and labor-relations risk. BP Whiting Refinery Lockout Nears Six Months

About BP

BP p.l.c. is a global integrated energy company headquartered in London, England. Its operations span the energy value chain, including exploration and production of oil and natural gas, refining, fuel marketing, energy trading and transportation. BP also produces and markets lubricants through its Castrol brand and supplies fuels through retail networks operating under brands such as BP, Aral and ampm.

The company has operations and business relationships across multiple regions, including the Americas, Europe, the Middle East, Africa and Asia-Pacific.

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