We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Petrobras (PBR) Report Q4 Earnings Beat on Output Gains?
Read MoreHide Full Article
Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) is set to release fourth-quarter 2023 results on Mar 7. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.11 per share on revenues of $26.5 billion.
Let’s delve into the factors that might have influenced Brazil's state-run energy giant’s results in the December quarter. But it’s worth taking a look at PBR’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, the Rio de Janeiro-headquartered oil company missed the consensus mark due to lower Brent prices and rising pre-salt lifting costs that resulted in weak upstream results, plus higher refining outlay and an unfavourable exchange rate. PBR had reported earnings per ADS of 86 cents, below the Zacks Consensus Estimate of 90 cents. Revenues of $25.6 billion generated by the firm also underperformed the Zacks Consensus Estimate by 6.9%.
Petrobras beat the Zacks Consensus Estimate in two of the last four quarters and missed in the other two, which resulted in an earnings surprise of 3.8%, on average. This is depicted in the graph below:
Petroleo Brasileiro S.A.- Petrobras Price and EPS Surprise
The Zacks Consensus Estimate for the fiscal third-quarter bottom line has been revised 1.8% downward in the past seven days. The estimated figure indicates an 11.2% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 12.3% decrease from the year-ago period.
Factors to Consider
Petrobras is expected to have reaped the reward of higher production during the fourth 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. In the third quarter, the company’s Brazilian oil and natural gas production — constituting approximately 99% of the total output — increased 9% to 2,843 thousand barrels of oil equivalent per day (MBOE/d). The uptick is expected to have continued in the to-be-reported quarter on the back of ramp-up of certain offshore platforms.
But on a somewhat bearish note, a dip in commodity realizations might have dampened the positives associated with production gains. In the third quarter of 2023, the company’s average sales price of oil (or the average Brent crude price) fell 14% from the year-earlier period to $86.76 per barrel. We expect this decline to have continued in the fourth quarter, with benchmark prices down year over year.
Moreover, the increase in Petrobras’ costs might have dented the company’s to-be-reported bottom line. PBR’s pre-salt lifting costs in the third quarter increased around 4.7% year over year to $5.61 per barrel. The upward cost trajectory is likely to have continued in the fourth 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 fourth quarter of 2023. 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: PBR has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.11 per share each.
Zacks Rank: Petrobras 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:
Compugen Ltd. (CGEN - Free Report) has an Earnings ESP of +451.63% and a Zacks Rank #2. The firm is scheduled to release earnings on Mar 5.
The 2024 Zacks Consensus Estimate for Compugen indicates 81.7% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 18.2%, on average. Valued at around $228.7 million, CGEN has gained 213.7% in a year.
OPAL Fuels Inc. (OPAL - Free Report) has an Earnings ESP of +27.27% and a Zacks Rank #3. The firm is scheduled to release earnings on Mar 13.
Over the past 60 days, OPAL Fuels’ Zacks Consensus Estimate for 2024 earnings has moved up 22.9%. Valued at around $820.5 million, OPAL has lost 36.1% in a year.
Riley Exploration Permian, Inc. (REPX - Free Report) has an Earnings ESP of +10.90% and a Zacks Rank #3. The firm is scheduled to release earnings on Mar 6.
The 2024 Zacks Consensus Estimate for Riley Exploration Permian indicates 28.6% year-over-year earnings per share growth. Valued at around $501.3 million, REPX has lost 25.8% in a year.
Image: Bigstock
Will Petrobras (PBR) Report Q4 Earnings Beat on Output Gains?
Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) is set to release fourth-quarter 2023 results on Mar 7. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.11 per share on revenues of $26.5 billion.
Let’s delve into the factors that might have influenced Brazil's state-run energy giant’s results in the December quarter. But it’s worth taking a look at PBR’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, the Rio de Janeiro-headquartered oil company missed the consensus mark due to lower Brent prices and rising pre-salt lifting costs that resulted in weak upstream results, plus higher refining outlay and an unfavourable exchange rate. PBR had reported earnings per ADS of 86 cents, below the Zacks Consensus Estimate of 90 cents. Revenues of $25.6 billion generated by the firm also underperformed the Zacks Consensus Estimate by 6.9%.
Petrobras beat the Zacks Consensus Estimate in two of the last four quarters and missed in the other two, which resulted in an earnings surprise of 3.8%, 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 fiscal third-quarter bottom line has been revised 1.8% downward in the past seven days. The estimated figure indicates an 11.2% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 12.3% decrease from the year-ago period.
Factors to Consider
Petrobras is expected to have reaped the reward of higher production during the fourth 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. In the third quarter, the company’s Brazilian oil and natural gas production — constituting approximately 99% of the total output — increased 9% to 2,843 thousand barrels of oil equivalent per day (MBOE/d). The uptick is expected to have continued in the to-be-reported quarter on the back of ramp-up of certain offshore platforms.
But on a somewhat bearish note, a dip in commodity realizations might have dampened the positives associated with production gains. In the third quarter of 2023, the company’s average sales price of oil (or the average Brent crude price) fell 14% from the year-earlier period to $86.76 per barrel. We expect this decline to have continued in the fourth quarter, with benchmark prices down year over year.
Moreover, the increase in Petrobras’ costs might have dented the company’s to-be-reported bottom line. PBR’s pre-salt lifting costs in the third quarter increased around 4.7% year over year to $5.61 per barrel. The upward cost trajectory is likely to have continued in the fourth 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 fourth quarter of 2023. 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: PBR has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.11 per share each.
Zacks Rank: Petrobras 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:
Compugen Ltd. (CGEN - Free Report) has an Earnings ESP of +451.63% and a Zacks Rank #2. The firm is scheduled to release earnings on Mar 5.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The 2024 Zacks Consensus Estimate for Compugen indicates 81.7% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 18.2%, on average. Valued at around $228.7 million, CGEN has gained 213.7% in a year.
OPAL Fuels Inc. (OPAL - Free Report) has an Earnings ESP of +27.27% and a Zacks Rank #3. The firm is scheduled to release earnings on Mar 13.
Over the past 60 days, OPAL Fuels’ Zacks Consensus Estimate for 2024 earnings has moved up 22.9%. Valued at around $820.5 million, OPAL has lost 36.1% in a year.
Riley Exploration Permian, Inc. (REPX - Free Report) has an Earnings ESP of +10.90% and a Zacks Rank #3. The firm is scheduled to release earnings on Mar 6.
The 2024 Zacks Consensus Estimate for Riley Exploration Permian indicates 28.6% year-over-year earnings per share growth. Valued at around $501.3 million, REPX has lost 25.8% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.