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What's in the Cards for Tenaris (TS) This Earnings Season?

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Tenaris (TS - Free Report) is slated to release fourth-quarter 2022 financial numbers on Feb 15.

The Zacks Consensus Estimate for the company’s fourth-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, while missing in one.

Let’s see how things have shaped up for Tenaris this earnings season.

Tenaris S.A. Price and EPS Surprise

Tenaris S.A. Price and EPS Surprise

Tenaris S.A. price-eps-surprise | Tenaris S.A. Quote

Factors to Note

Higher shipments to pipeline projects and pricing gains are likely to have driven Tenaris’ top line in the fourth quarter. Higher average selling prices are expected to have boosted margins in the to-be-reported quarter.

Revenues from tubular products and services are expected to reflect a year-over-year increase on the back of higher average selling prices. The Zacks Consensus Estimate for segmental revenues in the fourth quarter indicates a 79.4% surge from the year-ago reported number.

However, lower sales of raw materials and pipes for plumbing applications might have weighed on other products and services revenues in the fourth quarter. The consensus mark for other revenues hints at a 2% decrease from the year-ago reported number. Additionally, an increase in raw material and energy costs is likely to have dented Tenaris’ bottom line.

Earnings Whispers

The proven Zacks model does not conclusively predict an earnings beat for Tenaris 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.

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: The Earnings ESP for Tenaris is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.38.

Zacks Rank: Tenaris currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of Q3 Earnings

In third-quarter 2022, Tenaris reported earnings of $1.03, which missed the Zacks Consensus Estimate of $1.04. Total revenues of $2,975 million outperformed the Zacks Consensus Estimate of $2,922 million. While the bottom line soared approximately 84% year over year, the top line jumped around 70%.

Stocks to Consider

Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

Allegion plc (ALLE - Free Report) has an Earnings ESP of +4.19% and a Zacks Rank #2. The company is set to release fourth-quarter results on Feb 22.

The Zacks Consensus Estimate for Allegion’s fourth-quarter earnings has been revised downward by 2.8% in the past 60 days. However, the company pulled off a trailing four-quarter earnings surprise of 8.8%, on average.

AptarGroup (ATR - Free Report) has an Earnings ESP of +3.28% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2022 results on Feb 16.

The Zacks Consensus Estimate for AptarGroup’s fourth-quarter earnings has been revised upward by a penny in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 0.8%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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