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What's in the Cards for Enviva Partners' (EVA) Q1 Earnings?

Zacks Equity Research

Enviva Partners, LP EVA is scheduled to release first-quarter 2020 earnings on Apr 30, before market open.

In the last reported quarter, the company witnessed a positive earnings surprise of 21.88%. However, in the trailing four quarters, the company came up with a negative earnings surprise of 72.49%, on average.

Let's take a closer look at the factors that are likely to have impacted the company’s performance.

Factors to Consider

On Mar 30, Enviva announced that its operations have not been significantly impacted by the outbreak of the novel coronavirus. So we may expect the company to have sold significant metric tons of industrial wood pallet in the first quarter of 2020, keeping up with its usual trend. This, in turn, is likely to have boosted its quarterly revenues.

The Zacks Consensus Estimate for first-quarter sales is pegged at $177 million, which suggests an increase of 11.6% from the year-ago quarter’s reported figure.

Moreover, the partnership’s liquidity position remained robust at the quarter-end, per the latest announcement. So its balance sheet is likely to reflect strong performance, once Enviva releases its quarterly results.

Further, the company's contract backlog during the quarter might have expanded with continued growth in global demand for biomass in markets across Europe and Asia. Such notable developments are expected to duly get reflected in the soon-to-be-reported quarterly performance.

Solid operational performance is projected to have boosted the company’s bottom line as well. The Zacks Consensus Estimate for first-quarter 2020 earnings per share is pegged at 15 cents, implying an annual improvement of 138.5%.

Enviva Partners, LP Price and EPS Surprise

Enviva Partners, LP Price and EPS Surprise

Enviva Partners, LP price-eps-surprise | Enviva Partners, LP Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Enviva Partners this earnings season. 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. 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.

Enviva Partners has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies you may want to consider from the same sector, as our model shows that these have the right combination of elements to post an earnings beat this season.

Southwestern Energy Company SWN has an Earnings ESP of +3.90% and a Zacks Rank #2. The company is expected to report first-quarter 2020 results on May 1.

Concho Resources Inc. CXO is slated to release first-quarter results on Apr 30. It has an Earnings ESP of +3.48% and a Zacks Rank #3.

Talos Energy Inc. TALO is slated to release first-quarter results on May 6. It has an Earnings ESP of +40.00% and a Zacks Rank #3.

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