Erste Group Bank Has Strong Forecast for BP FY2027 Earnings

BP p.l.c. (NYSE:BP) – Stock analysts at Erste Group Bank raised their FY2027 EPS estimates for BP in a research report issued to clients and investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the oil and gas exploration company will post earnings of $5.16 per share for the year, up from their prior forecast of $5.04. The consensus estimate for BP’s current full-year earnings is $8.08 per share.

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

BP has been the subject of several other reports. Needham & Company LLC initiated coverage on shares of BP in a research note on Thursday, October 1st. They set a “hold” rating for the company. Freedom Capital raised shares of BP from a “strong sell” rating to a “hold” rating in a report on Thursday, August 6th. Barclays reiterated an “overweight” rating on shares of BP in a research report on Monday, October 5th. Morgan Stanley reaffirmed an “overweight” rating on shares of BP in a research note on Friday, September 4th. Finally, Wells Fargo & Company raised shares of BP from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $48.00 to $57.00 in a report on Wednesday, September 30th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $49.44.

BP Stock Performance

BP stock opened at $50.55 on Tuesday. BP has a one year low of $33.22 and a one year high of $51.49. The firm has a 50-day simple moving average of $45.32 and a two-hundred day simple moving average of $42.50. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.95 and a current ratio of 1.27. The firm has a market cap of $132.44 billion, a price-to-earnings ratio of 10.45, a PEG ratio of 0.47 and a beta of 0.20.

BP Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, August 14th were given a $0.5196 dividend. The ex-dividend date of this dividend was Friday, August 14th. This represents a $2.08 annualized dividend and a yield of 4.1%. This is a boost from BP’s previous quarterly dividend of $0.4992. BP’s dividend payout ratio is 100.49%.

Hedge Funds Weigh In On BP

Institutional investors have recently modified their holdings of the business. Curry Webb Wealth Management LLC acquired a new stake in BP in the 3rd quarter valued at about $33,000. Financial Life Planners acquired a new stake in BP in the first quarter valued at approximately $39,000. Security National Bank of Sioux City Iowa IA acquired a new stake in BP in the second quarter valued at approximately $36,000. Sawyer & Company Inc purchased a new position in BP in the third quarter worth approximately $49,000. Finally, Gill Capital Partners LLC lifted its stake in BP by 53.2% in the second quarter. Gill Capital Partners LLC now owns 1,376 shares of the oil and gas exploration company’s stock worth $51,000 after acquiring an additional 478 shares during the last quarter. Institutional investors and hedge funds own 11.01% of the company’s stock.

More BP News

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP and Louisiana state leaders agreed to resolve outstanding Deepwater Horizon-related coastal lawsuits. The settlement removes a source of legal uncertainty, although the articles do not provide the final payout amount. BP and Louisiana resolve outstanding Deepwater Horizon lawsuits
• Positive Sentiment: BP is entering earnings with record refining margins and improved production guidance. Those strengths could help offset pressure from impairments and support cash generation if sustained. BP write-downs and production outlook
• Neutral Sentiment: BP remains valued at a relatively low forward earnings multiple compared with some energy peers, but investors are questioning whether elevated oil-sector earnings can persist into 2027 or represent a potential value trap. Zacks Value Trader highlights BP
• Negative Sentiment: BP has flagged approximately $3.0 billion to $4.5 billion in potential write-downs before the October 30 report. The charges could weigh on reported earnings and raise questions about asset quality and capital allocation, despite the stronger operating outlook. BP write-downs ahead of earnings
• Negative Sentiment: The Whiting refinery lockout has reached 221 days, prolonging labor disruption and creating potential operational and employee-relations costs. BP Whiting refinery lockout
• Negative Sentiment: BP underperformed while the broader market advanced, reflecting investor caution ahead of earnings. Short interest also rose 61.8% between September 30 and October 15, signaling increased bearish positioning, although short interest remains a small portion of shares outstanding. BP stock performance ahead of earnings

About BP

BP p.l.c. is a global integrated energy company headquartered in London, United Kingdom. Its operations span the exploration, development and production of oil and natural gas, as well as the processing, refining, transportation and marketing of energy products.

Through its businesses, BP supplies fuels for road transportation, aviation and marine use, along with lubricants marketed under the Castrol brand. The company also operates retail fuel and convenience locations and provides energy products and services to commercial and industrial customers.

BP has expanded its activities beyond traditional hydrocarbons to include lower-carbon businesses such as renewable power, bioenergy, electric-vehicle charging and hydrogen.