Gran Tierra Energy Inc. GTE is scheduled to reportfourth-quarter 2018 results on Feb 27, before the opening bell.
In the last reported quarter, the upstream energy player posted a positive earnings surprise of 200%. Moreover, the company has an average positive earnings surprise of 24% for the last four quarters.
Which Way Are Estimates Treading?
Let’s take a look at the estimate revision trend to get a clear picture of analyst opinion on the stock before the earnings release.
The Zacks Consensus Estimate for fourth-quarter 2018 earnings of 6 cents remained the same in the past seven days. The estimate reflects a year-over-year improvement of 50%.
Further, the consensus estimate for revenues of $154.4 million shows an increase of 21.4% from the year-ago quarter.
Factors Likely to Affect Results
Through fourth-quarter 2018, the Brent crude plunged from an average monthly price of 81.03 a barrel in October to $57.36 in December last year, per the U.S. Energy Information Administration.
Being an oil explorer and producer in Colombia, the decline in commodity price will likely prove unfavorable. Despite this, the company’s production increased during the quarter. Gran Tierra recently announced that its daily fourth-quarter 2018 production grew 11% year over year and 6% sequentially to 38,220 barrels of oil equivalent (BoE).
Our proven model does not show a beat for Gran Tierra this earnings season. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -33.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Gran Tierra carries a Zacks Rank #2, which when combined with an Earnings ESP of -33.33%, lowers the possibility of an earnings surprise.
Conversely, Sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are a few firms that you may want to consider on the basis of our model. These have the right combination of elements to beat estimates this quarter.
Par Pacific Holdings, Inc. PARR has a Zacks Rank #2 and an Earnings ESP of +21.70%. The company will report quarterly earnings on Mar 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earthstone Energy, Inc. ESTE has a Zacks Rank #3 and an Earnings ESP of +6.52%.
Goodrich Petroleum Corporation GDP has a Zacks Rank #3 and an Earnings ESP of +2.36%. The company will release quarterly earnings on Mar 5.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
Gran Tierra Energy Inc. (GTE) : Free Stock Analysis Report
Earthstone Energy, Inc. (ESTE) : Free Stock Analysis Report
Goodrich Petroleum Corporation (GDP) : Free Stock Analysis Report
To read this article on Zacks.com click here.