Cramer Is Right About Hess

By Roger Choudhury, Lead Editor A month ago, the host of Mad Money on CNBC (M-F at 6pm EST), Jim Cramer, recommended Hess (HES) on his April 26 and 27 shows. Since the April 26 close, HES is down by 4%. He then reiterated the buy on May 16. Without the bells and whistles, we thought that we would break this one down for you. On April 27, Hess reported Q1 2011 results with non-GAAP EPS coming in at $1.82, excluding proceeds from selling natural gas-producing assets in the U.K. portion of the North Sea. This was +22.14% from Q1 2010′s $1.49. This also beat the consensus estimate of $1.85, ex-items. Revenues rose to $10.515 B (+14.04%), and exceeded Street forecasts of $10.03 B. Oil and gas production was 399,000 barrels per day (b/d), compared with 423,000 in Q1 2010 due to the shedding of the North Sea assets and temporary shutdown of operations in Libya. For Q2 2011, the Street expects to see $2.16 in non-GAAP EPS (+87.82%) alongside revenues of $9.3 B (+20.08%). In 2010, GAAP EPS surged by 185.02% to $6.47 with revenues of $34.613 B (+17.06%). We expect Hess to continue to benefit from higher crude oil prices. We have consistently…

This content is for Membership members only. Please login to view this content. (Register here.)