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Penn Virginia (PVAC) to Report Q1 Earnings: What's in Store?

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Penn Virginia Corporation is set to report first-quarter 2021 results on May 4, after the closing bell.

In the last reported quarter, the company reported earnings of $1.43 per share that beat the Zacks Consensus Estimate of earnings of $1.05, thanks to lower gathering, processing and transportation costs. Notably, the company beat the consensus estimate for earnings in the prior four quarters, the average earnings surprise being 34.4%, as shown in the chart below.

Let’s see how things have shaped up prior to the announcement.

Penn Virginia Corporation Price and EPS Surprise

 

Penn Virginia Corporation Price and EPS Surprise

Penn Virginia Corporation price-eps-surprise | Penn Virginia Corporation Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of 42 cents has seen two upward and one downward movement in the past 60 days. The figure suggests year-over-year deterioration of 77.9%.

The consensus estimate for March quarter revenues is at $73.1 million, indicating a decline of 20%.

Factors to Consider

The company, with significant exposure to Eagle Ford shale play, recently provided an operational update, where the upstream firm reported total sales volumes for the first quarter of 2021 of 20,534 barrels of oil equivalent per day (BoE/D). This marked a deterioration from 26,740 BoE/D in the prior-year quarter.

In its operational update, Penn Virginia added its realized oil price for the quarter at $44.80 per barrel, including effects of derivatives, net. This marked a decline from $54.15 per barrel in the March quarter of 2020.

Thus, lower production and realized oil price are likely to have hurt the company’s bottom line.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Penn Virginia this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases chances of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at earnings of 42 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Penn Virginia currently carries a Zacks Rank #2.

Stocks That Warrant a Look

Here are some firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Exxon Mobil Corporation (XOM - Free Report) has an Earnings ESP of +8.09% and is a Zacks #1 Ranked player. The company is scheduled to release first-quarter results on Apr 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cimarex Energy has an Earnings ESP of +18.41% and a Zacks Rank of 3. It is scheduled to report first-quarter results on May 5.

EQT Corporation (EQT - Free Report) has an Earnings ESP of +4.40% and a Zacks Rank #3. The firm is scheduled to release first-quarter earnings on May 5.

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