Earnings Preview: Ovintiv (OVV) Q4 Earnings Expected to Decline

Core Viewpoint - Ovintiv (OVV) is expected to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook being crucial for assessing the company's earnings picture [1][2] Earnings Expectations - The upcoming earnings report is anticipated to be released on February 23, with expected earnings of $0.98 per share, reflecting a year-over-year decrease of 27.4% [3] - Revenues are projected to be $1.95 billion, down 11% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 2.67% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Ovintiv is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.44% [12] Historical Performance - In the last reported quarter, Ovintiv exceeded the expected earnings of $0.97 per share by delivering $1.03, resulting in a surprise of +6.19% [13] - Over the past four quarters, the company has beaten consensus EPS estimates three times [14] Predictive Indicators - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - However, Ovintiv currently holds a Zacks Rank of 5, making it challenging to predict a beat despite the positive Earnings ESP [12] Conclusion - Ovintiv does not appear to be a compelling earnings-beat candidate, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17]