Ovintiv (OVV) got here out with quarterly earnings of $1.10 per share, in keeping with the Zacks Consensus Estimate. This compares to earnings of $0.10 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
1 / 4 in the past, it was anticipated that this power firm would publish earnings of $0.63 per share when it truly produced earnings of $0.70, delivering a shock of 11.11%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates two occasions.
Ovintiv, which belongs to the Zacks Oil and Fuel – Exploration and Manufacturing – Canadian trade, posted revenues of $1.84 billion for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 11.22%. This compares to year-ago revenues of $2.64 billion. The corporate has topped consensus income estimates simply as soon as during the last 4 quarters.
The sustainability of the inventory’s speedy value motion primarily based on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Ovintiv shares have added about 60.2% because the starting of the 12 months versus the S&P 500’s acquire of 11.5%.
What’s Subsequent for Ovintiv?
Whereas Ovintiv has outperformed the market to date this 12 months, the query that involves buyers’ 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 buyers tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested ranking device just like the Zacks Rank, which has a formidable monitor document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Ovintiv was blended. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in keeping with the market within the close to future. You may see the whole listing of as we speak’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably 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 $0.80 on $1.62 billion in revenues for the approaching quarter and $3.62 on $6.45 billion in revenues for the present fiscal 12 months.
Buyers needs to be conscious of the truth that the outlook for the trade can have a cloth impression on the efficiency of the inventory as properly. When it comes to the Zacks Business Rank, Oil and Fuel – Exploration and Manufacturing – Canadian is at present within the backside 6% 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.
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Ovintiv Inc. (OVV): Free Inventory Evaluation Report
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