What's in the Offing for Tenaris (TS) This Earnings Season?
Tenaris TS is slated to release first-quarter 2023 financial numbers on Apr 26.
The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised upward by 7.8% in the past 60 days.
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
Ramped up production in North America and increased shipments and realized prices are likely to have driven Tenaris’ first-quarter performance.
Oil and gas drilling activity recovery in the Americas is expected to have boosted TS’ top line in the to-be-reported quarter. The Zacks Consensus Estimate for total sales in the first quarter indicates a 66.7% jump from the year-ago reported quarter.
Higher volumes and average selling prices are expected to translate into higher revenues for Tenaris’ tubular products and services. The Zacks Consensus Estimate for segmental revenues in the first quarter suggests a 10% rise from the sequential quarter’s reported figure.
Strength in the oil services business in Argentina is likely to have driven revenues of TS’ other products and services unit. The consensus mark for other revenues in the first quarter indicates a 3.2% increase from fourth-quarter 2022 reported figure.
However, Tenaris’ first-quarter performance might have been dented by high raw material and energy costs.
Earnings Whispers
Our proven model predicts 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 the case here, as elaborated below.
Earnings ESP: Tenaris has an Earnings ESP of +1.98% as the Most Accurate Estimate is pegged at $1.69, higher than the Zacks Consensus Estimate of $1.65. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Tenaris currently carries a Zacks Rank #2.
Highlights of Q4 Earnings
In fourth-quarter 2022, Tenaris reported earnings of $1.37 per share, which missed the Zacks Consensus Estimate of $1.38. Total revenues of $3,620 million outperformed the Zacks Consensus Estimate of $3,589 million. The top line surged 76% year over year, while the bottom line jumped more than 100%.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
A. O. Smith AOS has an Earnings ESP of +10.19% and a Zacks Rank #3. The company is scheduled to release first-quarter 2023 results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for A. O. Smith’s first-quarter earnings has been revised upward by a penny in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.
Graco Inc. GGG has an Earnings ESP of +2.44% and a Zacks Rank #3. The company is slated to release first-quarter 2023 results on Apr 26.
The Zacks Consensus Estimate for Graco’s first-quarter earnings has remained steady in the past 60 days. The company delivered a trailing four-quarter earnings surprise of 0.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Graco Inc. (GGG) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
