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.
William Partners (WPZ) Q4 Earnings: Whats in the Cards?
Read MoreHide Full Article
William Partners L.P. is set to report fourth-quarter 2016 results after the closing bell on Feb 15. In the preceding quarter, the partnership posted apositive earnings surprise of 68% — turning around from the negative surprises in the previous two quarters of 2016. It is to be noted that William Partners posted average negative earnings surprise of 72.26% for the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors at Play
Based in Tulsa, OK, Williams Partners LP is an energy infrastructure player, engaged in the gathering and processing of natural gas.
The energy market witnessed prolonged weakness since mid-2014 after oil and natural gas supply surpassed demand. This in turn brought down the prices of various stocks. However, the scenario has been improving off late since OPEC agreed modest oil output curbs for the first time since 2008. The entire sector therefore remains optimistic about the commodity price recovery.
The price of natural gas was above the psychological mark of $3 per MMBtu owing to the forecast of cold weather. The improvement in commodity prices is favorable for production which in turn will boost transportation and storage activities. This in turn could generate significant cash flow for midstream players like William Partners.
In the last three months the units of William Partners gained 17.5 % as against 15.5% growth for the Zacks categorized Energy and Pipeline MLP industry.
However, analyzing the financials of the William Partners and comparing it with other energy firms, certain data seem to be unfavorable for the partnership. For example, the current ratio of William Partners stands at 0.63 which denotes lower liquidity than partnership like Tallgrass Energy GP LP . Moreover, Zacks Consensus Estimate has been revised downwards over a period of 30 days by five cents.
Earnings Whispers
Our proven model does not conclusively show that William Partners L.P. is likely to beat earnings in the to-be reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter
Zacks Rank: William Partners carries a Zacks Rank #3 (Hold) which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies for investors to consider, that, according to our model have the right combination of elements to post an earnings beat this quarter:
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3. The company is expected to release earnings results on Feb 27.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
William Partners (WPZ) Q4 Earnings: Whats in the Cards?
William Partners L.P. is set to report fourth-quarter 2016 results after the closing bell on Feb 15. In the preceding quarter, the partnership posted apositive earnings surprise of 68% — turning around from the negative surprises in the previous two quarters of 2016. It is to be noted that William Partners posted average negative earnings surprise of 72.26% for the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors at Play
Based in Tulsa, OK, Williams Partners LP is an energy infrastructure player, engaged in the gathering and processing of natural gas.
The energy market witnessed prolonged weakness since mid-2014 after oil and natural gas supply surpassed demand. This in turn brought down the prices of various stocks. However, the scenario has been improving off late since OPEC agreed modest oil output curbs for the first time since 2008. The entire sector therefore remains optimistic about the commodity price recovery.
The price of natural gas was above the psychological mark of $3 per MMBtu owing to the forecast of cold weather. The improvement in commodity prices is favorable for production which in turn will boost transportation and storage activities. This in turn could generate significant cash flow for midstream players like William Partners.
In the last three months the units of William Partners gained 17.5 % as against 15.5% growth for the Zacks categorized Energy and Pipeline MLP industry.
However, analyzing the financials of the William Partners and comparing it with other energy firms, certain data seem to be unfavorable for the partnership. For example, the current ratio of William Partners stands at 0.63 which denotes lower liquidity than partnership like Tallgrass Energy GP LP . Moreover, Zacks Consensus Estimate has been revised downwards over a period of 30 days by five cents.
Earnings Whispers
Our proven model does not conclusively show that William Partners L.P. is likely to beat earnings in the to-be reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter
Zacks Rank: William Partners carries a Zacks Rank #3 (Hold) which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies for investors to consider, that, according to our model have the right combination of elements to post an earnings beat this quarter:
Southwestern Energy Company (SWN - Free Report) , which is expected to release earnings results on Feb 23, has an Earnings ESP of +8.33% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3. The company is expected to release earnings results on Feb 27.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>