Yahoo Finance CVR Energy (CVI) Q1 Earnings on Deck: Here's How It Will Fare
CVR Energy, Inc. CVI is set to release first-quarter results on May 1. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 95 cents per share on revenues of $2.2 billion.
Let’s delve into the factors that might have influenced the Sugar Land, TX-based refiner’s results in the March quarter. But it’s worth taking a look at CVR Energy’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the U.S. downstream operator beat the consensus mark on strong refining and fertilizer earnings. CVR Energy had reported adjusted earnings per share of $1.68, which came above the Zacks Consensus Estimate of $1.40. Revenues of $2.7 billion generated by the firm had also come in 16.7% higher than the consensus mark.
CVI beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 40.9%, on average. This is depicted in the graph below:
CVR Energy Inc. Price and EPS Surprise
CVR Energy Inc. price-eps-surprise | CVR Energy Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 4,650% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 6% decrease from the year-ago period.
Factors to Consider
CVR Energy is expected to have benefited from the positive trends in its key Petroleum segment. In the fourth quarter of 2022, the unit reported an operating income of $155 million, turning around the year-ago loss of $27 million as refining margins and crack spreads increased. The uptick, which is most likely to have continued in the first quarter on the back of high utilization and refined products’ pricing, might have buoyed the revenues and cash flows of CVI.
The company is also expected to have reaped the reward of tight market conditions in its Nitrogen Fertilizer division, allowing CVR Energy to sell the production at attractive prices. In the previous quarter, CVI’s operating income increased 41.7% year over year to $102 million. The momentum is expected to have continued in the to-be-reported quarter on high demand for urea ammonia nitrate and ammonia.
On a somewhat bearish note, CVR Energy’s cost of materials and other in the October-December period increased around 18.9% year over year to $2.1 billion. The upward cost trajectory is likely to have continued in the first quarter of 2023 due to higher product costs and inflationary pressure. This is expected to have somewhat dented the company’s to-be-reported earnings.
What Does Our Model Say?
The proven Zacks model does not conclusively show that CVR Energy is likely to beat estimates in the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: CVR Energy has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 95 cents per share each.
Zacks Rank: CVI currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for CVR Energy, here are some firms from the energy space that you may want to consider on the basis of our model:
Marathon Petroleum MPC has an Earnings ESP of +1.19% and a Zacks Rank #1. The firm is scheduled to release earnings on May 2.
The Zacks Consensus Estimate for MPC’s 2023 earnings has been revised 17.4% upward over the past 60 days. Valued at around $56.4 billion, Marathon Petroleum has gained 46.5% in a year.
TechnipFMC FTI has an Earnings ESP of +16.26% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 27.
For 2023, TechnipFMC has a projected earnings growth rate of 1,733.3%. Valued at around $6 billion, FTI has gained 68.4% in a year.
Canadian Natural Resources CNQ has an Earnings ESP of +4.29% and a Zacks Rank #3. The firm is scheduled to release earnings on May 4.
Canadian Natural Resources delivered a four-quarter average earnings surprise of 10.5%. Valued at around $66.3 billion, CNQ has lost 3.4% in a year.
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TechnipFMC plc (FTI) : Free Stock Analysis Report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
