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Oil & Gas Pipeline Q2 Earnings to Watch on Aug 1: CPPL, WMB
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With the Q2 earnings season taking center stage, investors are keeping a close watch on the numbers posted by the major companies. However, the sentiment toward the energy sector remains mixed. This is mainly because oil prices recently slipped to the lowest-ever level since May 9, 2016, while natural gas futures showed modest increase.
Per the Earnings Trends report, the general outlook for the energy sector remains bearish as it is expected to register a massive 77.3% year-over-year decline in earnings due to a 26% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness an earnings decline of 0.1%.
Also, growth for the benchmark S&P 500 index is likely to be negative for the fifth quarter in a row. Out of the 16 Zacks sectors (as of Jul 27), 10 are projected to underperform. So far, the 208 S&P 500 members that have released their Q2 results account for a total of 50.5% of the index’s market capitalization. Total earnings for these companies are down 4.7% year over year on 0.4% higher revenues. Of these, about 73.1% beat earnings per share (EPS) estimates and 51.9% surpassed top-line expectations.
For pipeline companies the second-quarter earnings season has just begun and we are yet to get a clear picture of the overall market condition. The opening was lukewarm at best as a major player in this space Kinder Morgan Inc. (KMI - Free Report) reported in-line numbers last week and slashed its capital expenditure guidance. Due to the prolonged weakness in commodity prices, dividend was also kept flat sequentially.
However, our bullishness for the pipeline space remains intact as the ramping up of oil production during the past few years has pushed the commodity market into the oversupply territory. This definitely calls for the need to store and transport services.
Let’s take a look at the expected earnings performance of two pipeline companies that are scheduled to post second-quarter earnings results on Aug 1.
Columbia Pipeline Partners LP has an Earnings ESP of 0.00% and Zacks Rank #3 (Hold). Though a favorable Zacks Rank increases the predictive power of ESP, an ESP of 0.00% makes surprise prediction difficult.
Last quarter, the company had reported earnings of 25 cents per share, in line with the Zacks Consensus Estimate. This had resulted in an earnings surprise of 0.00%. Also, the company missed the Zacks Consensus Estimate in only one of the last four quarters.
Williams Companies Inc. (WMB - Free Report) has an Earnings ESP of -10.53% and a Zacks Rank #3. Despite a favorable Zacks Rank, the stock’s negative ESP lowers its chances of a beat this quarter.
Last quarter, the company had reported earnings of 3 cents per share, below the Zacks Consensus Estimate of 10 cents. This had resulted in an earnings surprise of -70.00%. Moreover, the company missed the Zacks Consensus Estimate in three of the last four quarters.
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Oil & Gas Pipeline Q2 Earnings to Watch on Aug 1: CPPL, WMB
With the Q2 earnings season taking center stage, investors are keeping a close watch on the numbers posted by the major companies. However, the sentiment toward the energy sector remains mixed. This is mainly because oil prices recently slipped to the lowest-ever level since May 9, 2016, while natural gas futures showed modest increase.
Per the Earnings Trends report, the general outlook for the energy sector remains bearish as it is expected to register a massive 77.3% year-over-year decline in earnings due to a 26% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness an earnings decline of 0.1%.
Also, growth for the benchmark S&P 500 index is likely to be negative for the fifth quarter in a row. Out of the 16 Zacks sectors (as of Jul 27), 10 are projected to underperform. So far, the 208 S&P 500 members that have released their Q2 results account for a total of 50.5% of the index’s market capitalization. Total earnings for these companies are down 4.7% year over year on 0.4% higher revenues. Of these, about 73.1% beat earnings per share (EPS) estimates and 51.9% surpassed top-line expectations.
For pipeline companies the second-quarter earnings season has just begun and we are yet to get a clear picture of the overall market condition. The opening was lukewarm at best as a major player in this space Kinder Morgan Inc. (KMI - Free Report) reported in-line numbers last week and slashed its capital expenditure guidance. Due to the prolonged weakness in commodity prices, dividend was also kept flat sequentially.
However, our bullishness for the pipeline space remains intact as the ramping up of oil production during the past few years has pushed the commodity market into the oversupply territory. This definitely calls for the need to store and transport services.
Let’s take a look at the expected earnings performance of two pipeline companies that are scheduled to post second-quarter earnings results on Aug 1.
Columbia Pipeline Partners LP has an Earnings ESP of 0.00% and Zacks Rank #3 (Hold). Though a favorable Zacks Rank increases the predictive power of ESP, an ESP of 0.00% makes surprise prediction difficult.
Last quarter, the company had reported earnings of 25 cents per share, in line with the Zacks Consensus Estimate. This had resulted in an earnings surprise of 0.00%. Also, the company missed the Zacks Consensus Estimate in only one of the last four quarters.
COLUMBIA PIPELN Price and EPS Surprise
COLUMBIA PIPELN Price and EPS Surprise | COLUMBIA PIPELN Quote
Williams Companies Inc. (WMB - Free Report) has an Earnings ESP of -10.53% and a Zacks Rank #3. Despite a favorable Zacks Rank, the stock’s negative ESP lowers its chances of a beat this quarter.
Last quarter, the company had reported earnings of 3 cents per share, below the Zacks Consensus Estimate of 10 cents. This had resulted in an earnings surprise of -70.00%. Moreover, the company missed the Zacks Consensus Estimate in three of the last four quarters.
WILLIAMS COS Price and EPS Surprise
WILLIAMS COS Price and EPS Surprise | WILLIAMS COS Quote
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