Vermilion Energy Reports Earnings Miss Amid Market Struggles
Vermilion Energy (VET) reported quarterly earnings of $0.24 per share, falling short of the Zacks Consensus Estimate of $0.33 per share. This result is slightly lower compared to earnings of $0.25 per share from the same quarter last year. These numbers have been adjusted to remove non-recurring items.
The earnings surprise of -27.27% indicates significant challenges for the company. In the previous quarter, Vermilion was projected to make $0.31 per share but instead faced a loss of $0.38, leading to a startling surprise of -222.58%.
Out of the last four quarters, Vermilion has met or exceeded consensus earnings expectations only once.
Part of the Zacks Oil and Gas – Exploration and Production – International sector, Vermilion reported revenues of $359.27 million for the quarter ending September 2024. This figure missed the Zacks Consensus Estimate by 1.45% and marks a slight increase from $354.5 million a year ago. Notably, the company has continuously struggled to surpass revenue estimates for the past four quarters.
The direction of Vermilion’s stock price following this release will largely depend on management’s comments during the upcoming earnings call.
This year has been challenging, with Vermilion shares depreciating by about 19.6%, unlike the S&P 500, which has gained 21.2%.
Looking Ahead: What’s Next for Vermilion?
Despite underperforming the market, investors are curious about the future of Vermilion’s stock.
While there are no definitive answers, the company’s earnings outlook can provide valuable insight. This outlook not only includes the current earnings expectations for upcoming quarters but also tracks changes in these estimates.
Historical data suggest a strong link between stock movements and changes in earnings estimate revisions. Investors can monitor these revisions themselves or utilize reliable tools such as the Zacks Rank, known for its efficacy in highlighting trends in earnings revisions.
Prior to this earnings report, the momentum of estimate revisions for Vermilion has been mixed. Although these could shift following the recent report, the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Future estimates for the upcoming quarters and the current fiscal year will be closely watched. Currently, the consensus EPS estimate stands at $0.39 on revenues of $386.66 million for the next quarter, and $0.35 on $1.46 billion in revenues for the fiscal year.
It is important for investors to consider the industry’s outlook, as it can significantly impact stock performance. Currently, the Zacks Industry Rank for Oil and Gas – Exploration and Production – International places it in the bottom 38% among over 250 Zacks industries. Research indicates that the top half of Zacks-ranked industries generally outperform the bottom half by a factor exceeding 2 to 1.
Vaalco Energy (EGY), another company in the same sector, has not yet reported its results for the quarter ending September 2024, with the data expected on November 11. This company is projected to post quarterly earnings of $0.12 per share, reflecting an increase of 71.4% year-over-year. However, the consensus EPS estimate has been revised downward by 15.4% over the last 30 days.
Vaalco’s anticipated revenues are $128.64 million, which would represent a 10.6% uptick from the previous year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
