Equinor (EQNR) Gears Up for Q1 Earnings: What's in the Cards?

Equinor ASA EQNR is set to report first-quarter 2024 earnings on Apr 25.

In the last reported quarter, the company’s earnings of 64 cents per share missed the Zacks Consensus Estimate of $1.08 due to lower prices of liquids and gas in Norway. EQNR’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat the same once, delivering an average negative surprise of -12.76%. This is depicted in the graph below.

Equinor ASA Price and EPS Surprise

Equinor ASA Price and EPS Surprise

Equinor ASA price-eps-surprise | Equinor ASA Quote

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of $0.78 has witnessed three downward revisions over the past 30 days. The estimated figure implies a significant decline of 30.1% from the year-ago quarter’s reported number.

The Zacks Consensus Estimate for first-quarter revenues of $25.03 billion indicates a 14.4% deterioration from the year-ago reported figure.

Factors to Consider

Equinor is anticipated to have sustained a stable performance in the first quarter of 2024, supported by its strong presence across 30 countries, holding the second-largest position in European natural gas provision.

Amid increasing demand for renewable energy, the company expects to expand its renewable production to 4-6 GW by 2026 and 12-16 GW by 2035, with the goal of achieving net-zero greenhouse gas emissions by 2050. An expanding portfolio in solar and wind projects solidifies its long-term prospects.

However, challenges are likely to have loomed due to the softening of oil and gas prices, driven by a sluggish global economy and geopolitical tensions. Per the EIA data, the West Texas Intermediate crude price declined 1.4% sequentially in the first quarter. We expect total equity liquids and gas production to have decreased 2% year over year in the quarter to be reported.

These factors are anticipated to have affected demand and pricing dynamics, which must have adversely impacted EQNR's financial performance in the quarter.

Earnings Whisper

Our proven model does not predict an earnings beat for Equinor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: EQNR’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

PBF Energy PBF currently has an Earnings ESP of +5.29% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PBF Energy is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for PBF’s quarterly earnings is pegged at 57 cents per share, implying a 79.4% decline from the prior-year reported figure.

Antero Resources AR presently has an Earnings ESP of +1580% and a Zacks Rank #3.

Antero Resources is scheduled to release first-quarter earnings on Apr 24. The Zacks Consensus Estimate for AR’s quarterly earnings is pegged at 0 cent per share, indicating a 100% decline from the prior-year reported number.

EOG Resources, Inc. EOG currently has an Earnings ESP of +2.00% and a Zacks Rank #3.

EOG Resources is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for EOG’s quarterly earnings is pegged at $2.73 per share, indicating a 1.5% increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Equinor ASA (EQNR) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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