Ovintiv Inc. OVV is scheduled to release its first-quarter fiscal 2026 results on May 11. The Zacks Consensus Estimate for earnings is pegged at 98 cents per share on revenues of $1.95 billion.
Let us examine the key drivers that might have impacted 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 Q4 Earnings & Surprise History
In the last reported quarter, Ovintiv posted adjusted earnings per share of $1.39, which beat the Zacks Consensus Estimate of 98 cents, primarily due to higher plant condensate, natural gas liquids and natural gas production volumes and higher average realized natural gas prices. Moreover, the Denver, CO-based oil and gas exploration and production company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by 10.2%.
OVV’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed in the other, delivering an average surprise of 16.11%.
This is depicted in the graph below:
Ovintiv Inc. Price and EPS Surprise
Ovintiv Inc. price-eps-surprise | Ovintiv Inc. Quote
Trend in OVV’s Estimate Revision
The Zacks Consensus Estimate for first-quarter fiscal 2026 earnings has remained unchanged over the past seven days. The estimated figure indicates a 7.04% year-over-year increase. However, the Zacks Consensus Estimate for revenues implies a 2.98% decrease from the year-ago period.
Factors to Consider Ahead of OVV’s Q1 Results
Ovintiv generates revenues by extracting and selling crude oil, natural gas and natural gas liquids from its onshore operations in the United States and Canada. Its earnings are largely influenced by production volumes and prevailing market prices for these energy commodities. The company also aims to enhance profitability through efficient drilling practices, cost reduction and financial hedging to mitigate price fluctuations.
OVV’s revenues are likely to have decreased in the quarter to be reported. The reduction in OVV's costs is expected to have positively impacted its bottom line. As per our model, OVV’s total operating expenses are projected to reach $1.7 billion in the fiscal first quarter, decreasing 29.6% from the year-ago quarter’s level of $2.5 billion. Production, mineral and other taxes are expected to fall 22.3% year over year to $67.6 million.
Meanwhile, the cost of purchased products is anticipated to drop significantly by 12.8% to $350.5 million. Depreciation, depletion and amortization charges are forecasted at $511 million, marking a 6.2% reduction. In addition, administrative expenses are estimated at $79.2 million, representing a notable 14.8% year-over-year decrease.
Ovintiv’s first-quarter 2026 performance is likely to have benefited from higher expected production volumes, particularly from its Permian and Montney assets. The company guided for fiscal first-quarter production of 660-680 MBOE/d, including 220-225 Mbbls/d of oil and condensate. The January-March quarter is also likely to have been supported by contributions from the NuVista acquisition and continued operational efficiencies across Ovintiv’s core oil-rich acreage. The company’s portfolio optimization efforts and synergy realization from recent acquisitions are also expected to have aided margins and cash flow generation.
What Does Our Model Predict for OVV?
Our proven model predicts an earnings beat for OVVthis time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This 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 +21.28%. 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 #2.
Other Stocks With the Favorable Combination
Here are some other firms from other spaces that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Applied Materials AMAT has an Earnings ESP of +1.53% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The firm is scheduled to release earnings on May 14. Applied Materials is a leading semiconductor equipment company that provides materials engineering solutions for the manufacture of advanced chips and displays. Notably, the Zacks Consensus Estimate for Applied Materials’ 2026 earnings per share indicates 18.26% year-over-year growth. Valued at around $326.03 billion, Applied Materials’ shares have risen 175.1% in a year.
Klarna Group plc KLAR has an Earnings ESP of +12.67% and a Zacks Rank #2. The firm is scheduled to release earnings on May 14.
Klarna Group p is a Swedish fintech company offering buy-now-pay-later services, consumer banking and payment solutions worldwide. Notably, the Zacks Consensus Estimate for Klarna Group’s 2026 earnings per share indicates 107.59% year-over-year growth. Valued at around $5.41 billion, Klarna Group’s shares have decrease 68.8% in a year.
StoneCo STNE has an Earnings ESP of +3.94% and a Zacks Rank #3. The firm is scheduled to release earnings on May 14.
StoneCo is a Brazilian fintech firm specializing in digital payments and financial technology solutions for merchants and businesses. Notably, the Zacks Consensus Estimate for StoneCo’s 2026 earnings per share indicates 22.84% year-over-year growth.
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This article originally published on Zacks Investment Research (zacks.com).