It has been about a month since the last earnings report for Cenovus Energy (CVE Quick QuoteCVE - Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Cenovus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Cenovus Beats Q1 Earnings Estimates, Revenues Miss

Cenovus reported first-quarter earnings per share of 24 cents, beating the Zacks Consensus Estimate of earnings of 22 cents. However, the bottom line declined from the year-ago quarter’s earnings of 62 cents per share.

Total quarterly revenues of $9,069 million missed the Zacks Consensus Estimate of $9,633 million. The top line significantly declined from the year-ago quarter’s $14,178 million.

Better-than-expected quarterly earnings can be primarily attributed to higher contributions from the Canadian Manufacturing unit and lower expenses for purchased products. The positives were partially offset by lower contributions from the upstream segment.

Operational Performance

Upstream

The quarterly operating margin from the Oil Sands unit was C$1,150 million, declining from C$2,199 million reported a year ago.

In the March-end quarter, the company recorded daily oil sand production of 587.5 thousand barrels, down 1.3% year over year due to lower contribution from its Foster Creek and Christina Lake operations.

The operating margin at the Conventional unit was C$261 million, down from C$263 million in the year-ago quarter. In the first quarter, the company recorded daily liquid production of 28.4 thousand barrels, down 13.2% year over year.

The Offshore segment generated an operating margin of C$300 million, down from C$458 million in the year-ago quarter. In the reported quarter, the company recorded daily offshore liquid production of 20.3 thousand barrels.

Downstream

From the Canadian Manufacturing unit, the company reported an operating margin of C$263 million, up from C$121 million in the year-ago quarter. The company recorded Crude Oil processed volumes of 98.7 thousand barrels per day (MBbl/D).

The operating margin from the U.S. Manufacturing unit was C$128 million, down from the year-ago quarter’s C$423 million. Crude oil processed volumes were 359.2 MBbl/D, signifying a decline from 403.7 MBbl/D in the year-ago quarter.

Expenses

Transportation and blending expenses in the reported quarter declined to C$2,853 million from C$2,973 million a year ago. Also, expenses for purchased products declined to C$5,792 million from C$7,484 million in the prior-year quarter.

Capital Investment & Balance Sheet

The company made a total capital investment of C$1,101 million in the quarter under review.

As of Mar 31, 2023, the Canada-based energy player had cash and cash equivalents of C$2,049 million. Total long-term debt was C$8,681 million. Its total debt-to-capitalization was 23.7%.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

Currently, Cenovus has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Cenovus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.