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.
Magellan Midstream (MMP) Q2 Earnings: What to Expect?
Read MoreHide Full Article
Pipeline operator Magellan Midstream Partners L.P. is set to release its second-quarter 2017 results before the opening bell on Wednesday, Aug 2.
In the preceding three-month period, the Tulsa, OK-based partnership reported better-than-expected earnings on the back of solid contributions from all operating segments.
Coming to earnings surprise history, Magellan Midstream has an excellent record: its beaten estimates in each of the last four quarters.
Magellan Midstream Partners L.P. Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Magellan Midstream owns an attractive portfolio of energy infrastructure assets that generate stable and recurring fee- and tariff-based revenues. This includes the longest U.S. refined petroleum products pipeline system, access to almost 50% of refining capacity in the continental U.S. along with imports, and 85 petroleum terminals with more than 90 million barrels of storage.
In particular, increasing cash flow from growth projects coming online, together with continued strong performance from Magellan Midstream’s fee-based businesses will drive earnings.
However, higher operating expenses remain a concern. Moreover, Magellan Midstream’s non-fee based assets continue to be under pressure due to weak crude prices. This may result in reduced earnings and revenues for the firm.
Earnings Whispers
Our proven model does not conclusively show that Magellan Midstream will beat estimates this 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) to be able to beat consensus estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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, is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both stand at 89 cents.
Zacks Rank: Magellan Midstream has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the partnership’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Share Performance
Magellan Midstream has lost 7.3% of its value during the second quarter versus the 9.6% decline of its industry.
Stocks to Consider
While earnings beat looks uncertain for Magellan Midstream, here are some energy partnerships you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter:
Crestwood Equity Partners L.P. has an Earnings ESP of +160.00% and a Zacks Rank #2. The partnership is anticipated to release earnings on Aug 1.
Summit Midstream Partners L.P. (SMLP - Free Report) has an Earnings ESP of +192.31% and a Zacks Rank #2. The partnership is likely to release earnings on Aug 3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Magellan Midstream (MMP) Q2 Earnings: What to Expect?
Pipeline operator Magellan Midstream Partners L.P. is set to release its second-quarter 2017 results before the opening bell on Wednesday, Aug 2.
In the preceding three-month period, the Tulsa, OK-based partnership reported better-than-expected earnings on the back of solid contributions from all operating segments.
Coming to earnings surprise history, Magellan Midstream has an excellent record: its beaten estimates in each of the last four quarters.
Magellan Midstream Partners L.P. Price and EPS Surprise
Magellan Midstream Partners L.P. Price and EPS Surprise | Magellan Midstream Partners L.P. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Magellan Midstream owns an attractive portfolio of energy infrastructure assets that generate stable and recurring fee- and tariff-based revenues. This includes the longest U.S. refined petroleum products pipeline system, access to almost 50% of refining capacity in the continental U.S. along with imports, and 85 petroleum terminals with more than 90 million barrels of storage.
In particular, increasing cash flow from growth projects coming online, together with continued strong performance from Magellan Midstream’s fee-based businesses will drive earnings.
However, higher operating expenses remain a concern. Moreover, Magellan Midstream’s non-fee based assets continue to be under pressure due to weak crude prices. This may result in reduced earnings and revenues for the firm.
Earnings Whispers
Our proven model does not conclusively show that Magellan Midstream will beat estimates this 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) to be able to beat consensus estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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, is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both stand at 89 cents.
Zacks Rank: Magellan Midstream has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the partnership’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Share Performance
Magellan Midstream has lost 7.3% of its value during the second quarter versus the 9.6% decline of its industry.
Stocks to Consider
While earnings beat looks uncertain for Magellan Midstream, here are some energy partnerships you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter:
Global Partners L.P. (GLP - Free Report) has an Earnings ESP of +60.00% and a Zacks Rank #1. The partnership is expected to release earnings results on Aug 9. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crestwood Equity Partners L.P. has an Earnings ESP of +160.00% and a Zacks Rank #2. The partnership is anticipated to release earnings on Aug 1.
Summit Midstream Partners L.P. (SMLP - Free Report) has an Earnings ESP of +192.31% and a Zacks Rank #2. The partnership is likely to release earnings on Aug 3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>