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.
Cheniere Energy Partners (CQH): Q2 Earnings to Surprise?
Read MoreHide Full Article
Cheniere Energy Partners LP Holdings LLC is expected to report second-quarter 2016 results before the opening bell on Aug 9.
In each of the last four quarters, the partnership delivered an earnings surprise of 0.00%. Let’s see how things are shaping up for this announcement.
Factors to Consider this Quarter
Cheniere Energy Partners LP Holdings, by virtue of its 55.9% ownership in Cheniere Energy Partners LP (CQP - Free Report) , primarily operates the Sabine Pass natural gas regasification and liquefaction facilities. Cheniere Energy Partners LP Holdings also operates Creole Trail Pipeline located in Louisiana. This solid asset base might help the partnership to earn sufficiently for its shareholders.
Moreover, the fate of the midstream player’s business is positively correlated with natural gas production. The output of the commodity in the U.S. has been booming owing to hydraulic fracturing (or fracking) and sophisticated horizontal drilling techniques. In fact, it has been an oversupplied market for the commodity over the past few quarters. The same is applicable for the second quarter.
Hence, we can say that the business environment was favorable for the partnership as higher production of natural gas usually increases the need for regasification, liquefaction and transportation activities. Yet, we have to wait for the final earnings release to find out whether this increase in output translates into a positive surprise.
Earnings Whispers
Our proven model does not conclusively show that Cheniere Energy Partners LP Holdings is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents, resulting in an Earnings ESP of 0.00%.
Zacks Rank: Cheniere Energy Partners LP Holdings has a Zacks Rank #4 (Sell).
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when a firm is seeing negative estimate revisions.
Here are two players that have the right combination of elements to post an earnings beat this quarter:
Abraxas Petroleum Corp. (AXAS - Free Report) with an Earnings ESP of + 200.00% and a Zacks Rank #2 (Buy).
EV Energy Partners LP has an Earnings ESP of +24.14% and a Zacks Rank #2.
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 >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cheniere Energy Partners (CQH): Q2 Earnings to Surprise?
Cheniere Energy Partners LP Holdings LLC is expected to report second-quarter 2016 results before the opening bell on Aug 9.
In each of the last four quarters, the partnership delivered an earnings surprise of 0.00%. Let’s see how things are shaping up for this announcement.
Factors to Consider this Quarter
Cheniere Energy Partners LP Holdings, by virtue of its 55.9% ownership in Cheniere Energy Partners LP (CQP - Free Report) , primarily operates the Sabine Pass natural gas regasification and liquefaction facilities. Cheniere Energy Partners LP Holdings also operates Creole Trail Pipeline located in Louisiana. This solid asset base might help the partnership to earn sufficiently for its shareholders.
Moreover, the fate of the midstream player’s business is positively correlated with natural gas production. The output of the commodity in the U.S. has been booming owing to hydraulic fracturing (or fracking) and sophisticated horizontal drilling techniques. In fact, it has been an oversupplied market for the commodity over the past few quarters. The same is applicable for the second quarter.
Hence, we can say that the business environment was favorable for the partnership as higher production of natural gas usually increases the need for regasification, liquefaction and transportation activities. Yet, we have to wait for the final earnings release to find out whether this increase in output translates into a positive surprise.
Earnings Whispers
Our proven model does not conclusively show that Cheniere Energy Partners LP Holdings is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents, resulting in an Earnings ESP of 0.00%.
Zacks Rank: Cheniere Energy Partners LP Holdings has a Zacks Rank #4 (Sell).
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when a firm is seeing negative estimate revisions.
CHENIERE EP LP Price and EPS Surprise
CHENIERE EP LP Price and EPS Surprise | CHENIERE EP LP Quote
Stocks to Consider
Here are two players that have the right combination of elements to post an earnings beat this quarter:
Abraxas Petroleum Corp. (AXAS - Free Report) with an Earnings ESP of + 200.00% and a Zacks Rank #2 (Buy).
EV Energy Partners LP has an Earnings ESP of +24.14% and a Zacks Rank #2.
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 >>