What's In The Cards For Eni SpA (E) This Earnings Season?
Zacks Investment Research | Feb 28, 2017 07:35AM ET
Integrated energy company Eni SpA (TO:E) is set to report fourth-quarter 2016 results, before the closing bell on Mar 1.
Surprise History
Eni’s track record has been disappointing so far. In the preceding quarter, the company had a negative earnings surprise of 244.44%. It is to be noted that over the four trailing quarters, the company delivered positive earnings surprise once but missed estimates in all the other occasions. The average negative earnings surprise for the company for the preceding four quarters was 202.66%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Based in Rome, Italy, Eni with its consolidated subsidiaries is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments are Exploration and Production (E&P), Gas and Power, and Refining and Marketing.
The energy industry witnessed a lull market since mid-2014 after oil and natural gas supply exceeded demand and brought down the prices of various stocks. However, with the OPEC agreement of output curb, the scenario has been improving as prices of both oil and natural gas are rebounding.
The OPEC deal is likely to have a positive impact on the upstream segment of the Eni by boosting drilling activities. However, the rising oil price is likely to be unfavorable for the refining segment leading to lower margins.
During the October to December quarter, the shares of Eni rallied 11% as against 8% gain for the Zacks categorized Zacks Investment Research
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