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Petrobras (PBR) to Report Q2 Earnings: What's in the Cards?
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Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) is set to release second-quarter 2021 results on Aug 4. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 92 cents per share on revenues of $19.17 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 Petrobras’ previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the integrated energy major missed the consensus mark owing to lower production and a slight increase in pre-salt lifting costs. Petrobras had reported earnings per ADS of 3 cents, below the Zacks Consensus Estimate of 26 cents. The company’s revenues of $15.7 billion had also underperformed the Zacks Consensus Estimate by 9.43%.
Petrobras beat the Zacks Consensus Estimate twice in the last four quarters and missed in the other two, delivering an earnings surprise of 308.91%, on average. This is depicted in the graph below:
Petroleo Brasileiro S.A. Petrobras Price and EPS Surprise
In the January to March period, the average sales price of oil in Brazil rose 14.7% from the year-earlier period to $57.32 per barrel. The uptick is most likely to have continued in the second quarter, thanks to the sharp rebound in commodity prices that revisited their multi-year highs following the vaccine progress and the ongoing macroeconomic recovery. This price boost is likely to have buoyed the second-quarter results of the upstream unit of Petrobras.
But on a somewhat bearish note, the company is likely to have faced a decline in production. Per Petrobras’ recently issued update, the company produced 2.796 million barrels of oil equivalent per day in the second quarter, edging down 0.2% year over year. This might have impacted Petrobras’ revenues and cash flows in the June quarter.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Petrobras is likely to beat estimates in the second quarter. 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 92 cents per share each.
Zacks Rank: Petrobras currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
While an earnings beat looks uncertain for Petrobras, here are some firms from the energy space that you may want to consider on the basis of our model:
Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 3.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +0.50% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +1.38% and is Zacks #2 Ranked. The firm is scheduled to release earnings on Aug 5.
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Petrobras (PBR) to Report Q2 Earnings: What's in the Cards?
Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) is set to release second-quarter 2021 results on Aug 4. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 92 cents per share on revenues of $19.17 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 Petrobras’ previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the integrated energy major missed the consensus mark owing to lower production and a slight increase in pre-salt lifting costs. Petrobras had reported earnings per ADS of 3 cents, below the Zacks Consensus Estimate of 26 cents. The company’s revenues of $15.7 billion had also underperformed the Zacks Consensus Estimate by 9.43%.
Petrobras beat the Zacks Consensus Estimate twice in the last four quarters and missed in the other two, delivering an earnings surprise of 308.91%, 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
Factors to Consider
In the January to March period, the average sales price of oil in Brazil rose 14.7% from the year-earlier period to $57.32 per barrel. The uptick is most likely to have continued in the second quarter, thanks to the sharp rebound in commodity prices that revisited their multi-year highs following the vaccine progress and the ongoing macroeconomic recovery. This price boost is likely to have buoyed the second-quarter results of the upstream unit of Petrobras.
But on a somewhat bearish note, the company is likely to have faced a decline in production. Per Petrobras’ recently issued update, the company produced 2.796 million barrels of oil equivalent per day in the second quarter, edging down 0.2% year over year. This might have impacted Petrobras’ revenues and cash flows in the June quarter.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Petrobras is likely to beat estimates in the second quarter. 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 92 cents per share each.
Zacks Rank: Petrobras currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for Petrobras, here are some firms from the energy space that you may want to consider on the basis of our model:
Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 3.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +0.50% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +1.38% and is Zacks #2 Ranked. The firm is scheduled to release earnings on Aug 5.