Petrobras (PBR) Stock Rises on Surprise First-Quarter Earnings Beat

NEW YORK (TheStreet) -- Shares of Petrobras  (PBR) rose 1.68% to $10.30 in morning trading Monday after the beleaguered Brazilian state-owned energy company reported a surprise first-quarter earnings beat on Friday.

Petrobras posted a 1.2% decline in earnings to 5.33 billion reais, or $1.8 billion, compared to 5.39 billion reais in the same period one year earlier, according to Reuters. This beat the consensus estimate of a quarterly profit of 2.5 billion reais, according to analysts polled by Thomson Reuters.

The 49% plummet in oil prices in the several months nullified the effect of an 11% increase in crude output, but savings stemming from an end to fuel subsidies offset that decline. This helped increase operating results measured by EBITDA to 21.5 billion reais, more than a third higher than the 16 billion reais analysts had expected.

Separately, TheStreet Ratings team rates PETROLEO BRASILEIRO SA- PETR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PETROLEO BRASILEIRO SA- PETR (PBR) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

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