Petróleo Brasileiro S.A. (PBR, Financial), also known as Petrobras, will release its financial results for the second quarter of fiscal 2017 after market close on Aug. 10.
Analysts expect the Brazilian oil company will close the quarter with EPS of 15 cents on average. If the company meets expectations, the EPS will represent a 400% year-over-year increase.
Source: Yahoo Finance
Estimates ranged between a low of two cents and a high of 45 cents.
Quarterly revenue is expected to come in at $23.89 billion on average, which represents a 17.5% increase from the comparable quarter of fiscal 2016.
Source: Yahoo Finance
Analysts’ revenue estimates range between a low of $22.08 billion and a high of $26.94 billion.
Petrobras had approximately $20.39 billion in cash and securities, or $3.13 per share, at the end of the first quarter of fiscal 2017. Total debt amounted to $116.62 billion, for a total debt-equity ratio of 140.01 versus an industry average ratio of 42.17. The interest coverage ratio of 1.27 is below the industry average of 21.79. The interest coverage ratio measures the company’s ability to pay interest expenses on outstanding debt.
The current ratio, which measures Petrobras’ ability to meet its short-terms obligations with its available liquidity, is 1.71 versus an industry average of 1.55.
GuruFocus gives Petrobras a financial strength rating of 4 out of a total of 10.
Concerning the company's growth and profitability, GuruFocus gives a rating of 7 out of 10.
If Petrobras’ earnings are expected to grow 30.2% between fiscal 2017 and fiscal 2018, the average annual growth rate is expected to be - 19.6% over the next five fiscal years.
For full fiscal 2017, Petrobras is expected to generate EPS of 63 cents. Fiscal 2018 EPS is expected to be 82 cents.
Petrobras is currently trading around $8.86 per share with a market capitalization of $56.85 billion, Â a price-book (P/B) ratio of 0.74, a price-sales (P/S) ratio of 0.68 and a price-earnings (P/E) ratio of -20.85. The forward P/E ratio is 10.82.
Petrobras currently has a recommendation rating of 2.6 out of a total of 5. The analysts’ average target price is $10.83, which represents a 22.2% increase from its current market value.
During the second quarter, Leucadia National (Trades, Portfolio) opened a position in Petrobras, buying 120,000 shares. Ken Fisher (Trades, Portfolio) reduced his position by 0.16% to 10,779,106 shares.
Disclosure: I have no positions in Petróleo Brasileiro.
