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Equinor (EQNR) Gears Up for Q3 Earnings: What's in the Offing?

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Equinor ASA EQNR is set to report third-quarter 2021 results on Oct 27.

In the last reported quarter, the company’s earnings of 49 cents per share beat the Zacks Consensus Estimate by a penny owing to higher commodity prices and international production volumes.

The integrated energy player beat the Zacks Consensus Estimate for earnings in two of the prior three quarters, delivering a negative earnings surprise of 43.5%, on average. This is depicted in the graph below:

Equinor ASA Price and EPS Surprise

Equinor ASA Price and EPS Surprise
Equinor ASA Price and EPS Surprise

Equinor ASA price-eps-surprise | Equinor ASA Quote

Let’s see how things have shaped up prior to the upcoming earnings announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of 79 cents has seen one upward revision and zero downward movement in the past 30 days. The figure indicates an increase of 777.8% from the year-ago quarter.

Factors to Consider

Compared with the September quarter of 2020, the price of oil has recovered significantly, thanks to the rolling out of coronavirus vaccines at a massive scale. Higher oil price is likely to have aided upstream operations. Being involved in worldwide exploration activities, Equinor’s upstream business is likely to have been supported by a favorable commodity pricing scenario.

With the scaling up of coronavirus vaccine roll out, improving fuel demand has also aided refining and processing activities. The company, headquartered in Stavanger, Norway, is likely to have been backed by the favorable downstream business since it has a vast network of refineries, processing plants and terminals.

Although rising fuel demand is favorable for both upstream and downstream activities, recovering exploration and production business is expected to have increased field development costs, hurting the bottom line.

Earnings Whispers

Our proven model does not indicate 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: The company’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: Equinor currently sports a Zacks Rank #1.

Stocks to Consider

Here are some firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

EQT Corporation EQT has an Earnings ESP of +6.44% and is a Zacks #2 Ranked player. The company is scheduled to release third-quarter results on Oct 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

BP plc BP has an Earnings ESP of +11.62% and a Zacks Rank of 1. It is scheduled to report third-quarter results on Nov 2.

Callon Petroleum Company CPE has an Earnings ESP of +0.50% and a Zacks Rank #1. The firm is scheduled to release third-quarter earnings on Nov 3.

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BP p.l.c. (BP) : Free Stock Analysis Report

EQT Corporation (EQT) : Free Stock Analysis Report

Callon Petroleum Company (CPE) : Free Stock Analysis Report

Equinor ASA (EQNR) : Free Stock Analysis Report

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