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What's in Store for Cenovus Energy (CVE) in Q4 Earnings?

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Cenovus Energy Inc. (CVE - Free Report) is set to report fourth-quarter 2023 earnings on Feb 15, before the opening bell.

In the last reported quarter, the company’s earnings of 72 cents per share beat the Zacks Consensus Estimate of 63 cents backed by higher contributions from the Oil Sands unit and lower expenses. CVE’s earnings missed the Zacks Consensus Estimate in one of the trailing four quarters and beat the same thrice, delivering an average negative earnings surprise of 3.3%. This is depicted in the graph below.

Cenovus Energy Inc Price and EPS Surprise

Cenovus Energy Inc Price and EPS Surprise

Cenovus Energy Inc price-eps-surprise | Cenovus Energy Inc Quote

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings per share of 25 cents has witnessed two downward revisions over the past 30 days. The estimated figure suggests a decline from the year-ago quarter’s reported number.

The Zacks Consensus Estimate for fourth-quarter revenues of $9.7 billion indicates a 6.1% fall from the year-ago reported figure.

Factors to Consider

Per data provided by the U.S. Energy Information Administration, the average spot West Texas Intermediate crude prices per barrel in October, November and December were $85.64, $77.69 and $71.90, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices, higher than the $70 per barrel mark, were impressive and healthy.

Like oil, natural gas prices in the December quarter were also lower year over year.

On the production front, the Zacks Consensus Estimate for the integrated energy company’s upstream production volumes is pegged at 808 thousand barrels of oil equivalent per day (MBoE/D), suggesting an increase from 806.9 MBoE/D in the prior-year quarter.

Thus, while decreased commodity prices are likely to have hurt Cenovus Energy’s earnings, higher production may have partially offset the negative.

Earnings Whispers

Our proven model does not indicate an earnings beat for CVE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: CVE’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Western Midstream Partners LP (WES - Free Report) currently has an Earnings ESP of +4.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The partnership is scheduled to release fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for WES’s earnings is pegged at 78 cents per share, suggesting a decline from the year-ago figure.

Cheniere Energy, Inc. (LNG - Free Report) currently has an Earnings ESP of +5.55% and a Zacks Rank #3.

Cheniere Energy is scheduled to release fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate for LNG’s earnings is pegged at $2.70 per share.

PBF Energy Inc. (PBF - Free Report) has an Earnings ESP of +14.29% and is a Zacks #3 Ranked player at present.

PBF is scheduled to release fourth-quarter results on Feb 15. The Zacks Consensus Estimate for PBF Energy’s earnings is pegged at 8 cents per share, suggesting a massive year-over-year decline.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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