TotalEnergies SE (NYSE: TTE) has confirmed that it will release its Q4 2021 earnings report on Tuesday, February 8, 2022, before the market open.
What to look for
Earnings: Stockearning’s Estimated EPS for the fourth quarter is expected to be $2.06 per share representing YoY growth of 347.83%. In the same quarter a year ago, the company had earnings per share of $0.46. TotalEnergies produced an EPS surprise of 12.82% in the third quarter by posting EPS of $1.76. Historical EPS Performance shows that in the past 12 quarters, the company has topped EPS estimates 22 times (62%), met two times (5%), and missed 11 times (31%).
Revenue: The company reported revenue of $118.88 million in the past quarter representing 54%, and for the first nine months of 2021, the company announced revenue of $296,947 million. The company recorded $4.5 million in Q3 2021 under different COVID-10 relief programs.
Stock movement: TTE shares have gained 12.7% since the company released its third-quarter earnings. Interestingly, TTE shares have been UP two times out of the past four quarters. So, the historical price reaction suggests a 50% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 1%, while the predicted move on the seventh day is 1%.
What analysts are saying
UBS analyst Jon Rigby upgraded TTE from Hold to Buy and also raised his price target from €42 to €50. Rigby says the company is well-positioned to take advantage of the current high oil prices. In a research note to investors, the analyst indicated that oil prices could reach $81 per barrel this year in tight oil markets as the post-pandemic demand recovers. Still, supply seems constrained by a multi-year shortfall in investment.
Morgan Stanley analyst Martijn Rats raised his price target on the stock from €51 to €52 but maintained a Hold rating on the shares. Also, JPMorgan analyst Christyan Malek raised his price target on TTE shares from €58 to €60 but maintained a Hold rating on the stock. Deutsche Bank analyst James Hubbard also raised his price target in the stock from €48.3 to €53.5 but also kept a buy rating in the stock.
Recently, Piper Sandler analyst Ryan Todd increased his price target on the stock from $60 to $66 and maintained a Buy rating in the shares. Crude oil "tightness," according to the analyst, adds to the "strong" free cash flow prospects for integrated oils. He sees the sector's prospects for the second quarter as "unquestionably strong." With 14 percent free cash flow returns at the strip accelerated shareholder payments and second-half 2021 crude balances that signal "upwards risk to the forward oil curve," the analyst told investors in a research note that upstream valuations stay "severely undervalued."
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