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Market Overview

A Preview Of Ovintiv's Earnings

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On Wednesday, April 28, Ovintiv (NYSE:OVV) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Ovintiv EPS is expected to be around $0.77, according to sell-side analysts. Sales will likely be near $1.59 billion. In the same quarter last year, Ovintiv reported earnings per share of $0.1 on revenue of $2.64 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 670.0%. Sales would have fallen 39.84% from the same quarter last year. Here is how the Ovintiv's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.53 -0.21 -0.45 0.24
EPS Actual 0.70 -0.03 -0.43 0.10
Revenue Estimate 1.63 B 1.28 B 1.24 B 1.66 B
Revenue Actual 1.53 B 1.19 B 726.00 M 2.64 B

eps graph

Stock Performance

Over the last 52-week period, shares are up 317.95%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ovintiv is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings