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Ovintiv (OVV) Q1 Earnings Coming Up: Here's How It Will Fare
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Ovintiv Inc. (OVV - Free Report) is set to release first-quarter results on May 9. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $2.54 per share on revenues of $2.4 billion.
Let’s delve into the factors that might have influenced the independent energy producer’s results in the March quarter. But it’s worth taking a look at OVV’s previous-quarter performance first.
Highlights of Q4 Earnings
In the last-reported quarter, the Denver, CO-based upstream player missed the consensus mark on higher costs. OVV had reported adjusted earnings per share of $1.25, below the Zacks Consensus Estimate of $1.61. However, revenues of $3.3 billion generated by the firm stormed past the Zacks Consensus Estimate of $1.9 billion due to better-than-expected oil production.
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 130.9% rise year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 31.5% increase from the year-ago period.
Factors to Consider
Ovintiv is expected to have benefited from a surge in commodity price realizations. In the October-to-December period, the company’s realized natural gas price was $2.84 per thousand cubic feet compared with the year-ago level of $2.33. The realized oil price increased to $53.43 per barrel from $47.75 in the fourth quarter of 2020. The uptick is most likely to have continued in the first quarter, with oil and gas revisiting their multi-year highs following geopolitical tensions and robust demand. This price boost is likely to have buoyed the revenues and cash flows of OVV.
On a somewhat bearish note, the decrease in Ovintiv’s production might have dented the company’s to-be-reported bottom line as it pivots toward a steady output profile to stress on shareholder returns. Consequently, the consensus mark for OVV’s average Q1 volume is pegged at 500,000 barrels of oil equivalent per day (BOE/d), down from the prior-year quarter’s level of 538,300 BOE/d.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Ovintiv is likely to beat estimates in the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: OVV has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.54 per share each.
Zacks Rank: Ovintiv currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for OVV, here are some firms that you may want to consider on the basis of our model:
HighPeak Energy, Inc. (HPK - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #1. The firm is scheduled to release earnings on May 16.
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Ovintiv (OVV) Q1 Earnings Coming Up: Here's How It Will Fare
Ovintiv Inc. (OVV - Free Report) is set to release first-quarter results on May 9. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $2.54 per share on revenues of $2.4 billion.
Let’s delve into the factors that might have influenced the independent energy producer’s results in the March quarter. But it’s worth taking a look at OVV’s previous-quarter performance first.
Highlights of Q4 Earnings
In the last-reported quarter, the Denver, CO-based upstream player missed the consensus mark on higher costs. OVV had reported adjusted earnings per share of $1.25, below the Zacks Consensus Estimate of $1.61. However, revenues of $3.3 billion generated by the firm stormed past the Zacks Consensus Estimate of $1.9 billion due to better-than-expected oil production.
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 130.9% rise year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 31.5% increase from the year-ago period.
Factors to Consider
Ovintiv is expected to have benefited from a surge in commodity price realizations. In the October-to-December period, the company’s realized natural gas price was $2.84 per thousand cubic feet compared with the year-ago level of $2.33. The realized oil price increased to $53.43 per barrel from $47.75 in the fourth quarter of 2020. The uptick is most likely to have continued in the first quarter, with oil and gas revisiting their multi-year highs following geopolitical tensions and robust demand. This price boost is likely to have buoyed the revenues and cash flows of OVV.
On a somewhat bearish note, the decrease in Ovintiv’s production might have dented the company’s to-be-reported bottom line as it pivots toward a steady output profile to stress on shareholder returns. Consequently, the consensus mark for OVV’s average Q1 volume is pegged at 500,000 barrels of oil equivalent per day (BOE/d), down from the prior-year quarter’s level of 538,300 BOE/d.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Ovintiv is likely to beat estimates in the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: OVV has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.54 per share each.
Zacks Rank: Ovintiv currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for OVV, here are some firms that you may want to consider on the basis of our model:
HighPeak Energy, Inc. (HPK - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #1. The firm is scheduled to release earnings on May 16.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, HPK has a projected earnings growth rate of 580.3%. Valued at around $2.9 billion, HighPeak Energy has soared around 229.6% in a year.
Blend Labs, Inc. (BLND - Free Report) has an Earnings ESP of +1.92% and is Zacks #2 Ranked. The firm is scheduled to release earnings on May 12.
BLND is valued at around $1 billion. For 2022, the company has a projected earnings growth rate of 22.7%. Blend Labs has lost around 79.8% in a year.
BioCardia, Inc. (BCDA - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3. The firm is scheduled to release earnings on May 11.
For 2022, BCDA has a projected earnings growth rate of 2.7%. Valued at around $27.2 million, BioCardia has decreased around 52.7% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.