Yahoo Finance Suncor's (SU) Q1 Earnings Preview: Key Things to Consider
Suncor Energy SU is set to release first-quarter results on May 8. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 93 cents per share on revenues of $7.8 billion.
Let’s delve into the factors that might have influenced the Canadian energy giant’s performance in the March quarter. But it’s worth taking a look at SU’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, this Calgary, Alberta-based operator beat the consensus mark on the back of significantly higher crude oil and refined product realizations. SU had reported earnings per share of $1.33, 7 cents above the Zacks Consensus Estimate. Revenues of $10.2 billion generated by the firm also came in above the Zacks Consensus Estimate of $9.7 billion.
SU beat the Zacks Consensus Estimate in each of the last four quarters, which resulted in an earnings surprise of 11.6%, on average. This is depicted in the graph below:
Suncor Energy Inc. Price and EPS Surprise
Suncor Energy Inc. price-eps-surprise | Suncor Energy Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 38.8% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 27% decrease from the year-ago period.
Factors to Consider
SU is expected to have reaped the reward of higher crude oil processed during the period. Despite softening from the spectacular highs of last year, the overall positive momentum in the refining space is most likely to have continued in the first quarter, thanks to the strength in fuel demand. Consequently, the Zacks Consensus Estimate for Suncor Energy’s daily crude oil processing volume is pegged at 451 thousand barrels, up more than 3% from the prior-year quarter’s level. This is likely to have buoyed the first-quarter results of SU.
On a somewhat bearish note, the increase in SU’s costs might have dented the company’s to-be-reported bottom line. The company’s fourth-quarter operating expenses totaled C$10.3 billion, up from the C$9.1 billion incurred in the year-ago period. The upward cost trajectory is likely to have continued in the first quarter due to the prevailing inflationary environment.
What Does Our Model Say?
The proven Zacks model does not conclusively show that SU is likely to beat estimates in the first 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: Suncor Energy has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 93 cents per share each.
Zacks Rank: SU 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 Suncor, here are some firms that you may want to consider on the basis of our model:
BellRing Brands, Inc. BRBR has an Earnings ESP of +1.38% and a Zacks Rank #2. The firm is scheduled to release earnings on May 8.
You can see the complete list of today’s Zacks #1 Rank stocks here.
BellRing Brands beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 19.1%, on average. Valued at around $5 billion, BRBR has gained 75% in a year.
Blink Charging Co. BLNK has an Earnings ESP of +27.74% and a Zacks Rank #2. The firm is scheduled to release earnings on May 9.
Blink Charging beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of 3.6%, on average. Valued at around $438 million, BLNK has lost 62% in a year.
Occidental Petroleum OXY has an Earnings ESP of +0.09% and a Zacks Rank #3. The firm is scheduled to release earnings on May 9.
Occidental Petroleum’s expected EPS growth rate for three to five years is currently 22%, which compares favorably with the industry's growth rate of 21.8%. Valued at around $55.3 billion, OXY has lost 5.8% in a year.
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Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : Free Stock Analysis Report
Blink Charging Co. (BLNK) : Free Stock Analysis Report
BellRing Brands Inc. (BRBR) : Free Stock Analysis Report
