Ovintiv to Report Q2 Earnings: What's in the Offing for the Stock?

Ovintiv Inc. OVV is set to release second-quarter results on July 24. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share on revenues of $1.9 billion.Let us delve into the factors that might have influenced OVV’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.Highlights of OVV’s Q1 Earnings & Surprise HistoryIn the last reported quarter, the Denver, CO-based oil and gas exploration and production company beat the consensus mark due to improved natural gas pricing. OVV reported adjusted earnings per share of $1.42, beating the Zacks Consensus Estimate of $1.20. Total revenues of $2.4 billion beat the Zacks Consensus Estimate by 3.3%, fueled by higher contributions from product and service sales. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 27.8%. This is depicted in the chart below:Ovintiv Inc. Price and EPS Surprise Ovintiv Inc. price-eps-surprise | Ovintiv Inc. QuoteTrend in OVV’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2025 earnings has witnessed an upward movement of 2% in the past seven days. The estimated figure indicates a 16.1% year-over-year decline. The Zacks Consensus Estimate for revenues also implies a decline of about 14.7% from the year-ago period. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Factors to Consider Ahead of OVV’s Q2 ResultsOvintiv has a well-established presence in some of North America’s highest-quality basins, primarily the Montney, Anadarko and the Permian Basin. The company's acreage includes a premium inventory of high-quality, liquids-rich locations with an attractive mix of drilled but uncompleted wells, which can be quickly brought into production.Ovintiv expects its natural gas volumes to have been higher in the second quarter as gas systems in Western Canada are currently full in anticipation of LNG Canada coming online, which has been backing out volumes. Our model also predicts Ovintiv’s natural gas volumes in the second quarter to be 1818 million cubic feet per day (MMcf/d), an increase of 4.5% from the prior-year quarter. The company’s revenues from its operations in Canada are also projected to be $481.7 million, indicating an increase of 4.7% from the year-ago reported quarter. In the first quarter, the company achieved strong earnings due to improved natural gas pricing. We expect this uptick to continue in the second quarter of 2025 as well.But on a bearish note, the Zacks Consensus Estimate for second-quarter revenues is expected to have decreased from the year-ago quarter’s $2.3 billion. Higher expenses might also play a spoilsport. Our model projects that the company’s second quarter operating expenses to be $2.3 billion, a sharp increase from the year-ago quarter’s $1.7 billion.What Does Our Model Predict for OVV?Our proven model predicts an earnings beat for Ovintiv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here.Earnings ESP of OVV: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +7.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.OVV’s Zacks Rank: OVV currently carries a Zacks Rank #3.Other Stocks With the Favorable CombinationHere are some firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.Gibson Energy Inc. GBNXF has an Earnings ESP of +8.20% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.GBNXF is scheduled to release earnings on July 28. The Zacks Consensus Estimate for Gibson Energy’s 2025 earnings per share indicates 39.7% year-over-year growth. Valued at around $3 billion, Gibson Energy’s shares have gained 7.9% in a year.Magnolia Oil & Gas Corporation MGY currentlyhas an Earnings ESP of +6.77% and a Zacks Rank #3. MGY is slated to release earnings on July 30.Magnolia’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 7.1%. Valued at around $4.4 billion, Magnolia’s shares have lost 12.8% in a year.Tourmaline Oil Corp. TRMLF has an Earnings ESP of +12.99% and a Zacks Rank #3 at present. TRMLF is scheduled to release earnings on July 30.The Zacks Consensus Estimate for Tourmaline Oil’s 2025 earnings indicates 22.66% year-over-year growth. Valued at around $17.5 billion, Tourmaline Oil’s shares have surged 1% in a year.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Magnolia Oil & Gas Corp (MGY): Free Stock Analysis Report Ovintiv Inc. (OVV): Free Stock Analysis Report Gibson Energy Inc. (GBNXF): Free Stock Analysis Report Tourmaline Oil Corp. (TRMLF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks