Investment analysts at Zacks Research have revised their earnings expectations for Ovintiv Inc. (TSE:OVV), lowering the estimated earnings per share (EPS) for the third quarter of 2026 to $1.26. This adjustment comes from an earlier forecast of $1.28, as detailed in a research note released on December 29, 2023.
The revised projection is part of a broader consensus, which now anticipates Ovintiv’s full-year earnings for 2023 to be $5.66 per share. Analysts from Zacks also provided estimates for future quarters, projecting $1.71 for Q1 2027, $1.72 for Q2 2027, and maintaining $1.72 for Q3 2027, with an overall forecast of $7.07 for the fiscal year 2027.
Ovintiv recently disclosed its earnings results on November 4, 2023, reporting earnings of C$0.57 per share for the previous quarter. The company achieved a return on equity of 19.62% and a net margin of 20.34%, with revenue recorded at C$2.88 billion during the quarter.
Analyst Ratings and Stock Performance
Recent analyst reports reflect a mixed sentiment regarding Ovintiv’s stock. Wells Fargo & Company upgraded its rating to “hold” on October 17, 2023, while William Blair classified it as a “strong-buy” in a report issued on November 26, 2023. Other notable upgrades include the Royal Bank of Canada, which shifted its rating from “hold” to “moderate buy” on October 15, 2023, and Roth Capital, which raised its rating to “hold” on October 13, 2023.
Currently, Ovintiv has received a consensus rating of “Buy” from eight analysts, with five issuing a “strong buy,” one a “buy,” and two maintaining a “hold” rating.
As of Thursday, the stock opened at C$53.79, fluctuating between a twelve-month low of C$42.35 and a high of C$66.67. The company’s market capitalization stands at C$13.62 billion, with a price-to-earnings ratio of 57.84 and a beta of 0.85.
Dividend Declaration and Outlook
In addition to earnings estimates, Ovintiv has declared a quarterly dividend of $0.30 per share, which was paid on December 31, 2023, to stockholders of record on the same date. The dividend represents an annualized payout of $1.20 and a yield of 2.2%. The company’s current payout ratio is notably high at 129.03%.
The recent adjustments by Zacks Research reflect broader market sentiments regarding Ovintiv’s performance, particularly in light of fluctuating energy prices and changing market dynamics. The company continues to focus on developing its multi-basin portfolio while aiming to generate long-term shareholder value. As the energy sector evolves, analysts will likely keep a close eye on Ovintiv’s financial health and strategic initiatives in the coming quarters.
