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Will Start-Up Production Boost TOTAL's (TOT) Q1 Earnings?

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TOTAL S.A. is expected to report first-quarter 2019 results on Apr 26, before the opening bell. This integrated international oil & gas company missed earnings estimates in the last reported quarter by 4.10%.
 
Let’s see how things are shaping up for this announcement.

Factors to Consider

TOTAL’s Egina field start-up’s production will boost output in the first quarter. The company started production from the Egina field in Nigeria on Dec 29, 2018. This project has a capacity to produce 200,000 barrels of oil per day. The company is the operator of the project with a 24% interest.

TOTAL continues to benefit from its share buyback policy, cost-saving initiatives, accretive acquisitions and joint ventures. These factors are anticipated to benefit the company’s earnings in the to-be-reported quarter as well.

The Zacks Consensus Estimate for first-quarter earnings is $1.09 per share, which is in line with the year-ago reported figure.

TOTAL S.A. Price and EPS Surprise

TOTAL S.A. Price and EPS Surprise | TOTAL S.A. Quote

What the Zacks Model Unveils

Our proven model indicates that TOTAL is unlikely to beat estimates this earnings season. This is because it currently does not have the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.09 per share.

Zacks Rank: NextEra Energy currently carries a Zacks Rank #3. The combination of NextEra Energy’s Zacks Rank #3 and 0.00% ESP makes earnings surprise unlikely this season.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

EOG Resources, Inc. (EOG - Free Report) is expected to release first-quarter 2019 numbers on May 3. It has an Earnings ESP of +1.58% and carries a Zacks Rank #3.

Suncor Energy (SU - Free Report) is anticipated to release first-quarter 2019 results on May 1. It has an Earnings ESP of +9.71% and a Zacks Rank #3.

YPF Sociedad Anonima (YPF - Free Report) is anticipated to release first-quarter 2019 results on May 15. It has an Earnings ESP of +29.00% and a Zacks Rank #2.

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