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TOTAL (TOT) to Report Q2 Earnings: What's in the Offing?

Zacks Equity Research

TOTAL S.A. TOT is likely to beat earnings estimates when it reports second-quarter 2019 results on Jul 25, before the opening bell. This integrated oil and gas company recorded a negative earnings surprise of 6.42% in the last reported quarter.

Why a Likely Positive Surprise?

Our proven model shows that TOTAL has the right combination of two key ingredients to deliver a positive surprise in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TOTAL S.A. Price and EPS Surprise

TOTAL S.A. Price and EPS Surprise

TOTAL S.A. price-eps-surprise | TOTAL S.A. Quote

Earnings ESP: The company has an Earnings ESP of +0.38%.

Zacks Rank: TOTAL currently carries a Zacks Rank #3. The combination of a Zacks Rank #3 and +0.38% ESP makes us quite confident of an earnings beat in the quarter to be reported.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Factors at Play

TOTAL continues to expand LNG operation through acquisitions and the startup of projects, which are likely to boost the company’s production capacity. TOTAL has been benefiting from its share buyback policy and cost-saving initiatives, which remain positives for the quarter to be reported. During the second quarter, TOTAL started production from the Culzean field, situated offshore U.K.

It also expanded renewable operation by starting its second power plant in Japan. The company wants to build a profitable low-carbon electricity business and is investing in the range of $1.5-$2 billion per year in that regard.

The Zacks Consensus Estimate for second-quarter earnings is $1.31 per share, which is in line with the year-ago reported figure.

Other Stocks to Consider

In addition to TOTAL, investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Enterprise Products Partners L.P. EPD is expected to release second-quarter 2019 numbers on Jul 31. It has an Earnings ESP of +5.29% and carries a Zacks Rank #2.

Cenovus Energy Inc. CVE is expected to release second-quarter 2019 numbers on Jul 25. It has an Earnings ESP of +13.91% and carries a Zacks Rank #3.

Royal Dutch Shell PLC RDS.A is expected to release second-quarter 2019 numbers on Aug 1. It has an Earnings ESP of +0.55% and carries a Zacks Rank #3.

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