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Factors to Pay Attention to Ahead of Eni's (E) Q4 Earnings
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Eni S.p.A. (E - Free Report) is set to report fourth-quarter 2020 results on Feb 19.
In the last reported quarter, the company’s adjusted loss from continuing operations came in at 10 cents per American Depository Receipt (ADR) versus the year-ago profit of 49 cents. Lower production volumes, and average realized prices of liquids and natural gas affected the bottom line. The negatives, however, were partially offset by marginal recovery in retail consumption.
The Italy-based integrated energy major missed the Zacks Consensus Estimate thrice in the prior four quarters, delivering an average negative earnings surprise of 45.4%. This is depicted in the graph below:
Let’s see how things have shaped up prior to the announcement.
Estimates Unchanged
The Zacks Consensus Estimate for fourth-quarter earnings of 4 cents per ADR has seen no change over the past 30 days. The estimated figure suggests a year-over-year decrease of 87.9%.
Taking into account its full-year 2020 performance, the Zacks Consensus Estimate for revenues is pegged at $74.3 billion, indicating a decline of 6.6% from the year-ago reported figure.
Factors to Note
The company’s Exploration & Production segment is expected to have been affected by lower oil price levels. The Brent Crude price for the three months of fourth-quarter 2019 was recorded at $59.71, $63.21, and $67.31 per barrel. In comparison, the metric was down to $40.19 and $42.69 per barrel in October and November 2020, respectively. Although an improvement in price levels was seen in December 2020, it was still below the year-ago mark. This might have affected the company’s bottom line in the fourth quarter, making prediction of an earnings beat difficult.
Although fuel consumption rose sequentially in the December quarter, thanks to the withdrawal of coronavirus-induced lockdowns and travel bans, it was still way below the year-ago level. This might have affected profits from Eni’s Downstream segment, which is involved in refining and marketing petroleum products at retail and wholesale markets.
What the Quantitative Model Suggests
Our proven model does not conclusively predict an earnings beat for Eni this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see below.
Earnings ESP: Eni has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate for the quarter is currently pegged at 4 cents per ADR, in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Eni currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +4.83% and is a Zacks #2 Ranked player. The company is scheduled to release fourth-quarter results on Feb 25.
Matador Resources Company (MTDR - Free Report) has an Earnings ESP of +19.90% and a Zacks Rank of 1. It is scheduled to report fourth-quarter results on Feb 23.
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Factors to Pay Attention to Ahead of Eni's (E) Q4 Earnings
Eni S.p.A. (E - Free Report) is set to report fourth-quarter 2020 results on Feb 19.
In the last reported quarter, the company’s adjusted loss from continuing operations came in at 10 cents per American Depository Receipt (ADR) versus the year-ago profit of 49 cents. Lower production volumes, and average realized prices of liquids and natural gas affected the bottom line. The negatives, however, were partially offset by marginal recovery in retail consumption.
The Italy-based integrated energy major missed the Zacks Consensus Estimate thrice in the prior four quarters, delivering an average negative earnings surprise of 45.4%. This is depicted in the graph below:
Eni SpA Price and EPS Surprise
Eni SpA price-eps-surprise | Eni SpA Quote
Let’s see how things have shaped up prior to the announcement.
Estimates Unchanged
The Zacks Consensus Estimate for fourth-quarter earnings of 4 cents per ADR has seen no change over the past 30 days. The estimated figure suggests a year-over-year decrease of 87.9%.
Taking into account its full-year 2020 performance, the Zacks Consensus Estimate for revenues is pegged at $74.3 billion, indicating a decline of 6.6% from the year-ago reported figure.
Factors to Note
The company’s Exploration & Production segment is expected to have been affected by lower oil price levels. The Brent Crude price for the three months of fourth-quarter 2019 was recorded at $59.71, $63.21, and $67.31 per barrel. In comparison, the metric was down to $40.19 and $42.69 per barrel in October and November 2020, respectively. Although an improvement in price levels was seen in December 2020, it was still below the year-ago mark. This might have affected the company’s bottom line in the fourth quarter, making prediction of an earnings beat difficult.
Although fuel consumption rose sequentially in the December quarter, thanks to the withdrawal of coronavirus-induced lockdowns and travel bans, it was still way below the year-ago level. This might have affected profits from Eni’s Downstream segment, which is involved in refining and marketing petroleum products at retail and wholesale markets.
What the Quantitative Model Suggests
Our proven model does not conclusively predict an earnings beat for Eni this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see below.
Earnings ESP: Eni has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate for the quarter is currently pegged at 4 cents per ADR, in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Eni currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +8.58% and a Zacks Rank #2, currently. The company is scheduled to release quarterly earnings on Feb 22. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +4.83% and is a Zacks #2 Ranked player. The company is scheduled to release fourth-quarter results on Feb 25.
Matador Resources Company (MTDR - Free Report) has an Earnings ESP of +19.90% and a Zacks Rank of 1. It is scheduled to report fourth-quarter results on Feb 23.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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