China Petroleum & Chemical (NYSE: SNP) will report its Q2 earnings on August 30, 2021. The company is expected to post earnings of CNY0.155 per share compared to CNY 0.02 per share loss reported in Q2 2020.
Wall Street analysts expect the company to report revenue of CNY 705 billion, a significant increase from last year's revenue of CNY 478.74 billion in Q2. For the full year, Wall Street expects earnings of CNY 0.534 per share relative to a profit of CNY0.272 per share. Full-year revenue is expected to be around CNY2,643.43 billion relative to CNY 1,105.98 billion reported a year ago.
In Q1 2021, the company's operating income was RMB 576.982 billion, up 4.1% YoY, while net profit was RMB18.543 billion or RMB 0.153 per basic share. As a result, the company achieved a profit turnaround from a loss a year ago.
Sinopec shares70% likely to gain after the earnings release
Since the release of Q1 2021 financial results, the stock price has lost 9.7%. Over the past following earnings release, Sinopec shares have been UP in 12 quarters out of 17 quarters. Therefore historical price reaction indicates that there is a 70% chance of the shares going UP after the company releases its Q2 earnings results.
According to Stockearning's algorithm, the first day predicted move after earnings results is 1%. After seven days of earning release, the predicted move is 3%, with an average daily moving volume o9f 89,281 shares.
In Q1 2021, earnings were $2.28 per share, and in the last 12 quarters, the company has only missed estimates once (8%) and topped estimates once (8%), according to Stockearning’s historical EPS performance.
Goldman Sachs analyst upgraded Sinopec from Sell to Hold
Last month Goldman Sachs analyst Nikhil Bhandari upgraded the company's shares from Sell to Hold with a target price of $61.98, up from the previous target of $51.71. According to the analyst, a new consumption tax in China will reduce imports of impacted oil products and increase domestic crude runs. His upgrade reflects an improved downstream outlook.
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