Tenaris (TS) to Report Q2 Earnings: What's in the Cards?
Tenaris TS is slated to release second-quarter 2023 financial numbers on Aug 2.
The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised downward by a penny in the past 60 days. The company has a dull earnings surprise history, having outperformed the Zacks Consensus Estimate in only two of the preceding four quarters, while missing in the other two. The average beat was 9.2%.
Let’s see how things have shaped up for Tenaris this earnings season.
Tenaris S.A. Price and EPS Surprise
Tenaris S.A. price-eps-surprise | Tenaris S.A. Quote
Factors to Note
Tenaris’ second-quarter performance is likely to have been affected by weakness in the Americas region due to lower prices and a reduction in U.S. drilling activity.
While higher volumes are expected to have aided TS’ Tubular Products and Services segment in the second quarter, a decrease in average selling prices is likely to have weighed on revenues. The Zacks Consensus Estimate for the segment’s revenues indicates an 8.2% decrease from the sequential quarter’s reported figure.
However, the Other Products and Services segment is expected to have benefited from higher sales of sucker rods, pipes for civil and industrial installations in Europe, oilfield services in Argentina and coiled tubing. The Zacks Consensus Estimate for Other Products and Services revenues suggests an approximate 2% increase from first-quarter 2023 reported figure.
A decline in raw material and energy costs is expected to have supported Tenaris’ bottom line in the to-be-reported quarter.
What Does the Zacks Model Say
Our proven model does not conclusively predict an earnings beat for Tenaris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Tenaris has an Earnings ESP of +7.71% as the Most Accurate Estimate is pegged at $1.76, higher than the Zacks Consensus Estimate of $1.63. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Tenaris presently carries a Zacks Rank #4 (Sell).
Highlights of Q1 Earnings
Tenaris reported first-quarter 2023 earnings of $1.91 per share, which beat the Zacks Consensus Estimate of $1.65. Total revenues of $4,141 million surpassed the Zacks Consensus Estimate of $3,945 million. While the top line climbed 14.4% sequentially, the bottom line jumped 39.4%.
Stocks to Consider
Here are some companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Emerson Electric Co. EMR has an Earnings ESP of +2.35% and a Zacks Rank #2. The company is scheduled to release third-quarter fiscal 2023 (ended Jun 30, 2023) results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emerson pulled off a trailing four-quarter earnings surprise of 4.5%, on average. The stock has gained 11.8% in the past three months.
Ingersoll Rand IR has an Earnings ESP of +0.85% and a Zacks Rank #3. The company is slated to release second-quarter 2023 earnings numbers on Aug 2.
Ingersoll Rand delivered a trailing four-quarter earnings surprise of 12.6%, on average. The stock has rallied 14.2% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
