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Will Petrobras (PBR) Report Q2 Earnings Beat on Output Gains?
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Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) is set to release second-quarter 2024 results on Aug 8. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 55 cents per share on revenues of $24.2 billion.
Let’s delve into the factors that might have influenced Brazil's state-run energy giant’s results in the June quarter. But it’s worth taking a look at PBR’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, the Rio de Janeiro-headquartered oil company missed the consensus mark due to rising pre-salt lifting costs that resulted in weak upstream profitability, plus higher refining outlay. PBR had reported earnings per ADS of 75 cents, below the Zacks Consensus Estimate of 84 cents. Revenues of $23.8 billion generated by the firm also underperformed the Zacks Consensus Estimate by 3.5%.
Petrobras beat the Zacks Consensus Estimate for earnings just once in the last four quarters and missed in the other three, which resulted in a negative earnings surprise of 2.3%, on average. This is depicted in the graph below:
Petroleo Brasileiro S.A.- Petrobras Price and EPS Surprise
The Zacks Consensus Estimate for the second-quarter bottom line has been revised 15.4% downward in the past seven days. The estimated figure indicates a 38.9% drop year over year. The Zacks Consensus Estimate for revenues, however, suggests a 5.4% increase from the year-ago period.
Factors to Consider
Petrobras is expected to have reaped the reward of higher production during the second quarter. PBR continues to churn out an impressive output from its pre-salt reservoirs that lie below the Espírito Santo, Campos and Santos basins in deep and ultra-deep water.
According to the company’s “Production and Sales Report” for the second quarter of 2024, production of oil, natural gas and NGLs has risen 2.4% from the prior-year level. The total production of hydrocarbons reached 2,699 million barrels of oil equivalent (boe) per day. In particular, crude oil production increased 2.6% from the prior-year level to 2.16 million boe per day. The increase in production can be attributed to the ramp-up of the five FPSOs — Almirante Barroso, P-71, Anna Nery, Anita Garibaldi and Sepetiba. The uptick in output is expected to have buoyed its revenues and cash flows.
But on a somewhat bearish note, the increase in Petrobras’ costs might have dented its to-be-reported bottom line. PBR’s pre-salt lifting costs in the first quarter increased around 11.9% year over year to $6.28 per barrel. The upward cost trajectory is likely to have continued in the second quarter due to the prevailing inflationary environment.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Petrobras is likely to beat estimates in the second quarter of 2024. 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: Petrobras has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 55 cents per share each.
Zacks Rank: PBR currently carries a Zacks Rank #3, 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 Petrobras, here are some firms that you may want to consider on the basis of our model:
Solaris Oilfield Infrastructure (SOI - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 8.
Solaris Oilfield Infrastructure has a trailing four-quarter earnings surprise of 12.6%, on average. Valued at around $523.9 million, SOI has gained 5% in a year.
Take-Two Interactive Software (TTWO - Free Report) has an Earnings ESP of +85.72% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 8.
Take-Two Interactive Software’s expected EPS growth rate for three to five years is currently 32.5%, which compares favorably with the industry's growth rate of 25.4%. It has a trailing four-quarter earnings surprise of roughly 89.8%, on average. Valued at around $25.2 billion, TTWO has lost 1.2% in a year.
Iovance Biotherapeutics (IOVA - Free Report) has an Earnings ESP of +7.83% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug 8.
The 2024 Zacks Consensus Estimate for Iovance Biotherapeutics indicates 26.5% year-over-year earnings per share growth. Valued at around $2.2 billion, IOVA has gained 5.2% in a year.
Image: Bigstock
Will Petrobras (PBR) Report Q2 Earnings Beat on Output Gains?
Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) is set to release second-quarter 2024 results on Aug 8. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 55 cents per share on revenues of $24.2 billion.
Let’s delve into the factors that might have influenced Brazil's state-run energy giant’s results in the June quarter. But it’s worth taking a look at PBR’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, the Rio de Janeiro-headquartered oil company missed the consensus mark due to rising pre-salt lifting costs that resulted in weak upstream profitability, plus higher refining outlay. PBR had reported earnings per ADS of 75 cents, below the Zacks Consensus Estimate of 84 cents. Revenues of $23.8 billion generated by the firm also underperformed the Zacks Consensus Estimate by 3.5%.
Petrobras beat the Zacks Consensus Estimate for earnings just once in the last four quarters and missed in the other three, which resulted in a negative earnings surprise of 2.3%, on average. This is depicted in the graph below:
Petroleo Brasileiro S.A.- Petrobras Price and EPS Surprise
Petroleo Brasileiro S.A.- Petrobras price-eps-surprise | Petroleo Brasileiro S.A.- Petrobras Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line has been revised 15.4% downward in the past seven days. The estimated figure indicates a 38.9% drop year over year. The Zacks Consensus Estimate for revenues, however, suggests a 5.4% increase from the year-ago period.
Factors to Consider
Petrobras is expected to have reaped the reward of higher production during the second quarter. PBR continues to churn out an impressive output from its pre-salt reservoirs that lie below the Espírito Santo, Campos and Santos basins in deep and ultra-deep water.
According to the company’s “Production and Sales Report” for the second quarter of 2024, production of oil, natural gas and NGLs has risen 2.4% from the prior-year level. The total production of hydrocarbons reached 2,699 million barrels of oil equivalent (boe) per day. In particular, crude oil production increased 2.6% from the prior-year level to 2.16 million boe per day. The increase in production can be attributed to the ramp-up of the five FPSOs — Almirante Barroso, P-71, Anna Nery, Anita Garibaldi and Sepetiba. The uptick in output is expected to have buoyed its revenues and cash flows.
But on a somewhat bearish note, the increase in Petrobras’ costs might have dented its to-be-reported bottom line. PBR’s pre-salt lifting costs in the first quarter increased around 11.9% year over year to $6.28 per barrel. The upward cost trajectory is likely to have continued in the second quarter due to the prevailing inflationary environment.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Petrobras is likely to beat estimates in the second quarter of 2024. 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: Petrobras has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 55 cents per share each.
Zacks Rank: PBR currently carries a Zacks Rank #3, 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 Petrobras, here are some firms that you may want to consider on the basis of our model:
Solaris Oilfield Infrastructure (SOI - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 8.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Solaris Oilfield Infrastructure has a trailing four-quarter earnings surprise of 12.6%, on average. Valued at around $523.9 million, SOI has gained 5% in a year.
Take-Two Interactive Software (TTWO - Free Report) has an Earnings ESP of +85.72% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 8.
Take-Two Interactive Software’s expected EPS growth rate for three to five years is currently 32.5%, which compares favorably with the industry's growth rate of 25.4%. It has a trailing four-quarter earnings surprise of roughly 89.8%, on average. Valued at around $25.2 billion, TTWO has lost 1.2% in a year.
Iovance Biotherapeutics (IOVA - Free Report) has an Earnings ESP of +7.83% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug 8.
The 2024 Zacks Consensus Estimate for Iovance Biotherapeutics indicates 26.5% year-over-year earnings per share growth. Valued at around $2.2 billion, IOVA has gained 5.2% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.