Vista (VIST) Q3 Earnings Coming Up: Here's What to Expect
Vista Oil & Gas, S.A.B. de C.V. VIST is set to release third-quarter results on Oct 24. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.16 per share on revenues of $314.8 million.
Let’s delve into the factors that might have influenced the Mexico-based energy firm’s results in the September quarter. But it’s worth taking a look at Vista’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the Argentina-focused company missed the consensus mark due to weaker oil sales volumes and lower crude prices. Vista had reported adjusted earnings per share of 61 cents, which came in below the Zacks Consensus Estimate of 64 cents. Revenues of $231 million generated by the firm had also come in 8% below the consensus mark.
VIST missed the Zacks Consensus Estimate for earnings thrice in the last four quarters and beat in the other, resulting in an earnings surprise of (0.1%), on average. This is depicted in the graph below:
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Price and EPS Surprise
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR price-eps-surprise | Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has been revised 0.9% downward in the past seven days. The estimated figure indicates a 26.1% improvement year over year. The Zacks Consensus Estimate for revenues, however, suggests a 5.6% decrease from the year-ago period.
Factors to Consider
Vista is expected to have reaped the reward of higher production during the quarter. VIST continues to churn out an impressive output from its assets in southwest Argentina’s Vaca Muerta basin, where it focuses on growth through a combination of acquisitions and active drilling. In the previous quarter, VIST’s total output was up 4% year over year over year. The uptick is expected to have continued in the to-be-reported quarter on the back of higher productivity from the company’s flagship Bajada del Palo Oeste region.
Vista is also likely to have reaped the reward of lower costs. The company’s rising costs in the April-June period fell around 38% year over year to $4.8 per barrel of oil equivalent. The downward cost trajectory is likely to have continued in the third quarter of 2023 due to VIST’s focus to concentrate on shale operations. This is expected to have had a positive effect on the company’s to-be-reported earnings.
On a somewhat bearish note, lower year-over-year oil realizations might have dampened some of the positive impacts. According to the U.S. Energy Information Administration, in July, August and September of 2023, the average monthly WTI crude price was $76.03, $81.32 and $89.43 per barrel, respectively, which turns out to be $82.26 for the quarter. In 2022, average prices were $99.39 in July, $91.48 in August and $83.80 in September, or $91.56 for the quarter. This price drop is likely to have pullwn the revenues and cash flows of Vista.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Vista is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Vista Oil & Gas has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.16 per share each.
Zacks Rank: VIST currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Vista, here are some firms from the energy space that you may want to consider on the basis of our model:
Matador Resources Company MTDR has an Earnings ESP of +6.38% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 24.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 11.8%, on average. Valued at around $7.6 billion, MTDR has gained 4.8% in a year.
Range Resources Corporation RRC has an Earnings ESP of +7.08% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 24.
Range Resources beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 21.7%, on average. Valued at around $8.4 billion, RRC has gained 25.2% in a year.
Oceaneering International, Inc. OII has an Earnings ESP of +7.93% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 25.
For 2023, Oceaneering International has a projected earnings growth rate of 167.7%. Valued at around $2.6 billion, OII has surged 186.5% in a year.
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Range Resources Corporation (RRC) : Free Stock Analysis Report
Oceaneering International, Inc. (OII) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) : Free Stock Analysis Report
