Ointiv (OVV) came out with quarterly earnings of $0.70 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this energy company would post a loss of $0.16 per share when it actually produced a loss of $0.03, delivering a surprise of 81.25%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Ovintiv, which belongs to the Zacks Oil and Gas – Exploration and Production – Canadian industry, posted revenues of $1.53 billion for the quarter ended December 2020, missing the Zacks Consensus Estimate by 9.66%. This compares to year-ago revenues of $1.57 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
Ahead of this earnings release, the estimate revisions trend for Ovintiv was favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $1.49 billion in revenues for the coming quarter and $1.59 on $6.02 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas – Exploration and Production – Canadian is currently in the top 2% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.