Suncor Energy’s (TSX:SU)(NYSE:SU) results for the second quarter will be released on August 4. The current Zacks Consensus Estimate calls for earnings of $1.74 per share on $9.9 billion in sales for the quarter that has yet to be reported.
Let’s explore the variables that might have affected the performance of the Canadian oil giant in the June quarter. However, it’s essential to consider Suncor’s performance in the prior quarter.
Suncor’s Top Q1 Earnings Highlights & Surprise History
This Calgary, Alberta-based operator outperformed expectations in the most recent reported quarter due to the improving oil and refined product markets brought on by an increase in energy prices. Suncor exceeded the Zacks Consensus Estimate by $0.21 with operational profits per share of $1.52. The company’s $10.6 billion revenues also exceeded the $8.9 billion Zacks Consensus Estimate.
In two of the previous four quarters, Suncor Energy exceeded the Zacks Consensus Estimate, yielding an earnings surprise of, on average, 3.6%.
Current Estimate Revision Trend
The second-quarter bottom line Zacks Consensus Estimate stayed unchanged in the previous seven days. According to the calculation, there has been a yearly increase of 346.2%. In contrast, the sales Zacks Consensus Estimate predicts a 33.8% increase from the prior year’s quarter.
Factors to Think About
A rise in oil prices is anticipated to have been advantageous for Suncor Energy. The company’s realized crude price from January to March was $110.27 a barrel, up from $59.32 at the same time last year. The upward trend likely continued in the second quarter as commodity prices rose due to geopolitical unrest and tight fundamentals. This price increase is probably what helped Suncor’s revenues and cash flow.
In addition, the company should have benefited from increased sales of refined products throughout the quarter. Suncor reported gasoline sales of 551,900 barrels per day (bpd) in the prior three-month period, up from 548,100 bpd in the same period last year. The recovery in post-pandemic demand is expected to have driven margins higher in the yet-to-be-reported quarter, continuing the pace.
Suncor shares are up nearly 30% since the start of the year.
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