We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Oil & Gas Pipeline Stocks Q2 Earnings on Aug 4: PBA & More
Read MoreHide Full Article
As we are at the peak of the Q2 earnings season, this week is expected to see as many as 1000 companies reporting their financial results. Last week, 317 members of the S&P 500 index already reported their quarterly results. As we evaluate the results of these companies, we notice a slight sequential improvement in growth pace. However, growth for the benchmark S&P 500 index is likely to be negative for the fifth quarter in a row. In fact, eight of the 16 Zacks sectors (as of Jul 29) are projected to underperform.
With several oil pipeline companies yet to report their financial results, it is difficult to get a clear picture of the overall market condition. However, we remain bullish about the pipeline space as the ramp up of oil production over the past few years has resulted in the oversupply of the commodity in the market. This definitely boosts the need for storage and transportation services. Overall, we note that Q2 has raised optimism about oil price recovery, which fell to a 12-year low of $26.21 per barrel in February.
The prevailing trend in the oil and energy sector is well outlined in the Earnings Trends report. The general outlook for energy sector remains bearish as it is expected to register a massive 84% year-over-year decrease in earnings due to a 26% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness earnings growth of 0.3%.
As of Jul 29, 2016, 56.8% of the oil and energy companies had reported Q2 earnings results. These stocks account for 79.7% of the total market capitalization. Total earnings for these index members plunged 76.5% from the year-ago period, while revenues declined 24.6%. We now wait to see how other energy sector bigwigs like Chesapeake Energy Corporation (CHK - Free Report) and EOG Resources, Inc. (EOG - Free Report) perform when they report their results later this week.
Meanwhile, let’s take a look at how these three oil & gas pipeline companies might fare when they post their Q2 results on Aug 4.
Pembina Pipeline Corporation (PBA - Free Report) is expected to release Q2 results on Aug 4, after the market closes. Our proven model does not conclusively show that Pembina Pipeline is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for this to happen. The company has an Earnings ESP of 0.00%. Though the company has a favorable Zacks Rank #3, a 0.00% Earnings ESP makes surprise prediction difficult.
SemGroup Corporation is set to release Q2 numbers on Aug 4. SemGroup has an Earnings ESP of -28.57% as the Most Accurate estimate is pegged at 5 cents, while the Zacks Consensus Estimate stands at 7 cents. The company has a Zacks Rank #2 but a negative Earnings ESP complicates surprise prediction.
PennTex Midstream Partners, LP is slated to release Q2 results on Aug 4. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 14 cents. Though company has a Zacks Rank #2, its 0.00% Earnings ESP makes surprise prediction difficult.
Don’t miss out on our full earnings release articles for these three oil & gas pipeline stocks, as the actual results might hold some surprises!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Oil & Gas Pipeline Stocks Q2 Earnings on Aug 4: PBA & More
As we are at the peak of the Q2 earnings season, this week is expected to see as many as 1000 companies reporting their financial results. Last week, 317 members of the S&P 500 index already reported their quarterly results. As we evaluate the results of these companies, we notice a slight sequential improvement in growth pace. However, growth for the benchmark S&P 500 index is likely to be negative for the fifth quarter in a row. In fact, eight of the 16 Zacks sectors (as of Jul 29) are projected to underperform.
With several oil pipeline companies yet to report their financial results, it is difficult to get a clear picture of the overall market condition. However, we remain bullish about the pipeline space as the ramp up of oil production over the past few years has resulted in the oversupply of the commodity in the market. This definitely boosts the need for storage and transportation services. Overall, we note that Q2 has raised optimism about oil price recovery, which fell to a 12-year low of $26.21 per barrel in February.
The prevailing trend in the oil and energy sector is well outlined in the Earnings Trends report. The general outlook for energy sector remains bearish as it is expected to register a massive 84% year-over-year decrease in earnings due to a 26% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness earnings growth of 0.3%.
As of Jul 29, 2016, 56.8% of the oil and energy companies had reported Q2 earnings results. These stocks account for 79.7% of the total market capitalization. Total earnings for these index members plunged 76.5% from the year-ago period, while revenues declined 24.6%. We now wait to see how other energy sector bigwigs like Chesapeake Energy Corporation (CHK - Free Report) and EOG Resources, Inc. (EOG - Free Report) perform when they report their results later this week.
Meanwhile, let’s take a look at how these three oil & gas pipeline companies might fare when they post their Q2 results on Aug 4.
Pembina Pipeline Corporation (PBA - Free Report) is expected to release Q2 results on Aug 4, after the market closes. Our proven model does not conclusively show that Pembina Pipeline is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for this to happen. The company has an Earnings ESP of 0.00%. Though the company has a favorable Zacks Rank #3, a 0.00% Earnings ESP makes surprise prediction difficult.
PEMBINA PIPELN Price and EPS Surprise
PEMBINA PIPELN Price and EPS Surprise | PEMBINA PIPELN Quote
SemGroup Corporation is set to release Q2 numbers on Aug 4. SemGroup has an Earnings ESP of -28.57% as the Most Accurate estimate is pegged at 5 cents, while the Zacks Consensus Estimate stands at 7 cents. The company has a Zacks Rank #2 but a negative Earnings ESP complicates surprise prediction.
SEMGROUP CORP-A Price and EPS Surprise
SEMGROUP CORP-A Price and EPS Surprise | SEMGROUP CORP-A Quote
PennTex Midstream Partners, LP is slated to release Q2 results on Aug 4. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 14 cents. Though company has a Zacks Rank #2, its 0.00% Earnings ESP makes surprise prediction difficult.
PENNTEX MIDSTRM Price and EPS Surprise
PENNTEX MIDSTRM Price and EPS Surprise | PENNTEX MIDSTRM Quote
Don’t miss out on our full earnings release articles for these three oil & gas pipeline stocks, as the actual results might hold some surprises!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>