Ovintiv's Earnings Outlook

Ovintiv OVV is preparing to release its quarterly earnings on Thursday, 2024-11-07. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Ovintiv to report an earnings per share (EPS) of $1.58.

Anticipation surrounds Ovintiv's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.17, leading to a 1.0% increase in the share price on the subsequent day.

Here's a look at Ovintiv's past performance and the resulting price change:

Tracking Ovintiv's Stock Performance

Shares of Ovintiv were trading at $39.95 as of November 05. Over the last 52-week period, shares are down 9.16%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Insights on Ovintiv

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Ovintiv.

A total of 9 analyst ratings have been received for Ovintiv, with the consensus rating being Buy. The average one-year price target stands at $52.89, suggesting a potential 32.39% upside.

Peer Ratings Comparison

In this analysis, we delve into the analyst ratings and average 1-year price targets of Permian Resources, APA and Antero Resources, three key industry players, offering insights into their relative performance expectations and market positioning.

• Permian Resources received a Outperform consensus from analysts, with an average 1-year price target of $18.13, implying a potential 54.62% downside.
• As per analysts' assessments, APA is favoring an Neutral trajectory, with an average 1-year price target of $35.74, suggesting a potential 10.54% downside.
• The consensus among analysts is an Neutral trajectory for Antero Resources, with an average 1-year price target of $32.47, indicating a potential 18.72% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Permian Resources, APA and Antero Resources, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Ovintiv ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Delving into Ovintiv's Background

Ovintiv is a North American oil and natural gas exploration and production company. It focuses on the exploration and development of oil, NGLs, and natural gas reserves. The company has three segments: USA Operations, Canadian Operations, and Market Optimization.

A Deep Dive into Ovintiv's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Ovintiv's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -9.1% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Ovintiv's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 14.86%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Ovintiv's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.3%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Ovintiv's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.72%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Ovintiv's debt-to-equity ratio surpasses industry norms, standing at 0.68. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Ovintiv visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.