Suncor Energy (TSX:SU) Earnings: What to Watch

Suncor (TSX:SU)(NYSE:SU) stock will announce earnings this week, and investors should watch business predictions most of all.

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Suncor Energy (TSX:SU)(NYSE:SU) will release earnings this week on Oct. 27. Suncor stock was climbing back to highs not seen since June, but, in recent days, has been dipping once more. So, what can Motley Fool investors expect from this earnings report on the TSX today?

What analysts expect

First, let’s take a look at what analysts estimate Suncor stock will be able to achieve. For the next quarter, Suncor stock should reach earnings per share of $0.96. This would represent a decrease of $0.09 compared to last year but a $0.68 improvement from the quarter before.

Furthermore, revenue should come in at $10.75 for the quarter — a 63% improvement year over year and 4% improvement quarter over quarter. This would help it achieve $39.35 billion in revenue for 2021 and put it on track towards $40.99 billion in 2022.

What analysts are saying

Analysts aren’t overly excited about Suncor stock for the next earnings season, and it’s clear why. While it’s making some headway, with a strong balance sheet that gives it “breathing room” for its large projects, in the long term, it might be one to merely watch.

The massive shift towards clean energy means, in the next few decades, Suncor stock will have to do more than just buy up some wind farms. In the short term, you could see some rewards as the oil environment recovers. In fact, you could also see a dividend boost back to pre-pandemic levels! But it’s after that boost that you’ll have to consider dumping this once-great stock.

What it will come down to during the earnings report is listening to management discuss business conditions. If it looks like supply chain issues will improve, as well as the oil and gas market, then Suncor stock could see a boost sooner as opposed to later. That makes it a solid company to invest in, especially as the largest fully-integrated energy company in the country.

But if it looks like these same issues will lag, and, worse, if we go back to the oil and gas glut of before, Suncor stock will have to make major headway in convincing investors it won’t slash dividends and half its share price in the future.

Foolish takeaway

Shares of Suncor stock trade at $28.75 as of writing. That’s almost half of its $55 share price back in 2018 before the market crash and oil and gas glut. While the company is making headway both in terms of production and share movement, analysts don’t expect anything crazy during this earnings report.

With more of the same, shares could remain more as the same. Though on average there is a potential upside of 30%, as of writing, for the next year. That’s on top of 83% growth in the last year, and 88% since the market crash.

What it comes down to is your own goals. Either way, if you’re at all interested in Suncor stock, the earnings call is definitely one you’ll want to listen into this week.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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