Vaalco Energy (EGY) reported earnings of $0.11 per share for the second quarter, falling short of the Zacks Consensus Estimate of $0.12 per share. This is a decline from earnings of $0.52 per share in the same period last year.
The company’s quarterly report reflects an earnings surprise of -8.33%. In the previous quarter, Vaalco Energy was expected to earn $0.49 per share but only delivered earnings of $0.07, resulting in a surprise of -85.71%.
Vaalco Energy generated revenues of $109.24 million for the quarter, exceeding the Zacks Consensus Estimate by 11.96%. However, this is a slight decrease from year-ago revenues of $110.99 million. The company has surpassed consensus revenue estimates twice in the last four quarters.
Investors are now looking to the future and wondering what’s next for Vaalco Energy. The company’s earnings outlook, which includes current consensus earnings expectations and recent changes in those expectations, can provide insight. Currently, estimate revisions for Vaalco Energy are unfavorable, leading to a Zacks Rank #4 (Sell) for the stock. This suggests that the shares are expected to underperform.
In addition to earnings expectations, investors should also consider the industry outlook. The Zacks Industry Rank for Oil and Gas – Exploration and Production – International is currently in the bottom 8% of all Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Suncor Energy (SU), another stock in the broader Oils-Energy sector, is yet to release its Q2 results. The company is expected to report earnings of $0.59 per share, representing a year-over-year decline of -72.2%. The consensus EPS estimate for the quarter has been revised 6.8% lower over the last 30 days. Suncor Energy’s revenues are expected to be $7.89 billion, down 37.9% from the same period last year.
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