CVR Vitality (CVI) got here out with a quarterly lack of $0.32 per share versus the Zacks Consensus Estimate of a lack of $0.75. This compares to lack of $0.44 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 57.33%. 1 / 4 in the past, it was anticipated that this diversified holding firm would submit a lack of $1.23 per share when it really produced a lack of $1.33, delivering a shock of -8.13%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
CVR, which belongs to the Zacks Oil and Fuel – Refining and Advertising and marketing business, posted revenues of $1.78 billion for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 56.11%. This compares to year-ago revenues of $675 million. The corporate has topped consensus income estimates 4 instances during the last 4 quarters.
The sustainability of the inventory’s speedy value motion based mostly on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
CVR shares have misplaced about 8.3% because the starting of the 12 months versus the S&P 500’s acquire of 17%.
What’s Subsequent for CVR?
Whereas CVR has underperformed the market thus far this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis exhibits a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested ranking instrument just like the Zacks Rank, which has a powerful observe report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for CVR was unfavorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You may see the entire record of as we speak’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is -$0.05 on $1.22 billion in revenues for the approaching quarter and -$2.15 on $5.15 billion in revenues for the present fiscal 12 months.
Traders needs to be conscious of the truth that the outlook for the business can have a fabric affect on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Oil and Fuel – Refining and Advertising and marketing is presently within the backside 3% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
5 Shares Set to Double
Every was hand-picked by a Zacks knowledgeable because the #1 favourite inventory to realize +100% or extra in 2021. Every comes from a distinct sector and has distinctive qualities and catalysts that would gas distinctive progress. Many of the shares on this report are flying beneath Wall Road radar, which supplies an excellent alternative to get in on the bottom ground.
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CVR Vitality Inc. (CVI): Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.