Suncor Energy SU is set to release fourth-quarter results on Feb 21. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 79 cents per share on revenues of $8.5 billion.
Before delving into the impending report for the Canadian energy giant, it’s important to understand its previous-quarter performance.
Recap of Third Quarter Earnings & Surprise History
In the last reported quarter, Suncor Energy in Calgary, Alberta, exceeded the consensus with higher-than-expected daily production volumes, reporting earnings per share of $1.13, surpassing the Zacks Consensus Estimate of 88 cents, and revenues of $9.4 billion, 15% above the Zacks Consensus Estimate. The company has consistently outperformed the Zacks Consensus Estimate in the past four quarters, with an average earnings surprise of 15.7%.
Suncor Energy Inc. Price and EPS Surprise
Last quarter’s performance indicates a significant, positive trend, as depicted in the chart above.
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 40.6% fall year over year, while revenues are expected to mark a 17.1% increase from the year-ago period.
Factors to Consider
Suncor Energy is expected to have benefited from higher output during the quarter, with estimated production volumes of some 795,000 barrels of oil equivalent per day (BOE/d). Additionally, an improvement in the company’s downstream operations, with total refined product sales estimated at 572,000 barrels per day, could have positively impacted its bottom line.
However, lower year-over-year oil realizations might have offset some of the positive impacts, as weaker average monthly WTI crude prices are expected to have pulled down the revenues and cash flows of Suncor Energy.
What Does Our Model Say?
The Zacks model does not conclusively show that Suncor Energy is likely to beat estimates in the fourth quarter. With an Earnings ESP of +0.64% and a Zacks Rank of #4 (Sell), the company may face challenges in surpassing expectations.
Stocks to Consider
While an earnings beat looks uncertain for Suncor Energy, there are other firms worth considering based on our model:
Ardelyx, Inc. ARDX with an Earnings ESP of +9.80% and a Zacks Rank #2, and Inter Parfums, Inc. IPAR with an Earnings ESP of +5.71% and a Zacks Rank #2. Both are scheduled to release earnings in late February. Additionally, Cheniere Energy LNG, with an Earnings ESP of +5.55%, and a Zacks Rank #3, presents a potential opportunity for investors.
Investors can benefit from considering these firms since they display favorable Earnings ESP and Zacks Ranks. Such assessments could assist in making informed investment decisions.
As investors await Suncor Energy’s quarterly results, it’s crucial to keep track of upcoming earnings announcements using the Zacks Earnings Calendar.
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As investors gear up for an eventful earnings season, engagement with the stock market continues to open up avenues for exploration and discovery, as shareholders anticipate the impact of these reports on their portfolios.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
