It has been about a month since the last earnings report for Enbridge Energy, L.P. . Shares have lost about 6.4% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
First-Quarter 2017 Results
Enbridge Energy Partners reported first-quarter 2017 adjusted earnings of $0.16 per unit, which surpassed the Zacks Consensus Estimate of $0.07. The upside was attributed to higher volumes from Mainline Expansion development and increased contributions from additional projects that started operating last year.
The bottom line, however, decreased from the year-earlier level of $0.17 per unit. The decrease mainly stemmed from lower income by both the liquid and natural gas segments.
Total revenue in the quarter increased to $1,178.7 million from the year-ago level of $1,061.6 million and also beat the Zacks Consensus Estimate of $1,133 million.
Segment Performance
Liquids: Adjusted operating income in the segment decreased to $277.3 million from $310.5 million in the comparable period of 2016. The downside stemmed from lower average rates and weak transportation volumes in the North Dakota system.
Natural Gas:The unit reported adjusted loss of $21.8 million, significantly wider than an operating loss of $1.6 million in the year-ago quarter. The deterioration mainly stemmed from lower natural gas and NGL system production volumes. Reduced system volumes were primarily attributable to the still low commodity price environment for hydrocarbons.
Distribution
Enbridge Energy Partners decreased its quarterly cash distribution to $0.35 per unit from $0.583 per unit, or $1.40 per unit on an annualized basis.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one move lower for the current quarter over the last 30 days.
Enbridge Energy, L.P. Price and Consensus
VGM Scores
At this time, Enbridge's stock has an average Growth Score of 'C', though its Momentum is lagging with a 'F'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value investors than growth investors.
Outlook
While estimates have been moving downward, the magnitude of the revision is net zero. The stock has a Zacks Rank #1 (Strong Buy). We expect above average returns from the stock in the next few months.
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Enbridge (EEP) Down 6.4% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Enbridge Energy, L.P. . Shares have lost about 6.4% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
First-Quarter 2017 Results
Enbridge Energy Partners reported first-quarter 2017 adjusted earnings of $0.16 per unit, which surpassed the Zacks Consensus Estimate of $0.07. The upside was attributed to higher volumes from Mainline Expansion development and increased contributions from additional projects that started operating last year.
The bottom line, however, decreased from the year-earlier level of $0.17 per unit. The decrease mainly stemmed from lower income by both the liquid and natural gas segments.
Total revenue in the quarter increased to $1,178.7 million from the year-ago level of $1,061.6 million and also beat the Zacks Consensus Estimate of $1,133 million.
Segment Performance
Liquids: Adjusted operating income in the segment decreased to $277.3 million from $310.5 million in the comparable period of 2016. The downside stemmed from lower average rates and weak transportation volumes in the North Dakota system.
Natural Gas:The unit reported adjusted loss of $21.8 million, significantly wider than an operating loss of $1.6 million in the year-ago quarter. The deterioration mainly stemmed from lower natural gas and NGL system production volumes. Reduced system volumes were primarily attributable to the still low commodity price environment for hydrocarbons.
Distribution
Enbridge Energy Partners decreased its quarterly cash distribution to $0.35 per unit from $0.583 per unit, or $1.40 per unit on an annualized basis.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one move lower for the current quarter over the last 30 days.
Enbridge Energy, L.P. Price and Consensus
Enbridge Energy, L.P. Price and Consensus | Enbridge Energy, L.P. Quote
VGM Scores
At this time, Enbridge's stock has an average Growth Score of 'C', though its Momentum is lagging with a 'F'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value investors than growth investors.
Outlook
While estimates have been moving downward, the magnitude of the revision is net zero. The stock has a Zacks Rank #1 (Strong Buy). We expect above average returns from the stock in the next few months.