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Enterprise Products (EPD) Q3 Earnings: Can it Beat Estimates?
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Enterprise Products Partners L.P. (EPD - Free Report) is scheduled to report third-quarter 2018 results on Oct 31, before the opening bell.
The midstream energy player beat the Zacks Consensus Estimate in three of the last four quarters. It delivered an average positive earnings surprise of 5.8% in the trailing four quarters. For the third quarter of 2018, the Zacks Consensus Estimate for earnings per unit is pegged at 45 cents, up 50% from the year-ago quarter.
Enterprise Products Partners L.P. Price and EPS Surprise
Let’s see how things are shaping up for the upcoming quarterly release.
Why a Likely Positive Surprise?
Our proven model shows that Enterprise Products is likely to beat earnings estimates because it has the right combination of two key ingredients.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +3.06%. This is a very meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Enterprise Products carries a Zacks Rank #2 (Buy), which when combined with +3.06% ESP, makes us confident about an earnings beat.
Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What’s Driving the Better-Than-Expected Performance?
The Zacks Consensus Estimate for gross operating margin from the NGL Pipeline & Services segment is pegged at $924 million for the third quarter, higher than the last reported quarter’s $914 million and the year-ago quarter’s $771 million. NGL pipeline transportation volumes for the quarter are expected at 3,450 thousand barrels per day (MBPD), higher than the year-ago period’s 3,052 MBPD.
The Natural Gas Pipeline and Servicessegment is expected to come up with gross operating margin of around $208 million compared with the year-ago period’s $171 million. Natural gas pipeline transportation volumes for the third quarter are expected at 13,586 billion British thermal units per day (BBtus/d), higher than the year-ago figure of 12,376 BBtus/d.
The Zacks Consensus Estimate for gross operating margin from the Crude Oil Pipelines & Services segment is pegged at $395 million for the third quarter, higher than the last reported quarter’s $53 million and the year-ago quarter’s $190 million. Crude oil pipeline transportation volumes are expected to be 2,065 MBPD in the quarter, higher than the year-ago period’s 1,458 MBPD.
The Zacks Consensus Estimate for gross operating margin from the Petrochemical & Refined Product Services unit is pegged at $259 million, up from $172 million in the third quarter of 2017. Petrochemical transportation volumes are expected at 786 MBPD in the third quarter, higher than the year-ago quarter’s 778 MBPD.
The above-mentioned parameters are expected to lead to a better-than-expected performance of Enterprise Products in the quarter to be reported.
Other Stocks to Consider
Here are some other companies from the energy sector, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:
Houston, TX-based Penn Virginia Corporation has a Zacks Rank #2 and an Earnings ESP of +6.38%. The company will report third-quarter earnings on Nov 14.
Woodlands, TX-based Anadarko Petroleum Corporation holds a Zacks Rank #2 and has an Earnings ESP of +2.19%. The company is scheduled to report third-quarter earnings on Oct 30.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Enterprise Products (EPD) Q3 Earnings: Can it Beat Estimates?
Enterprise Products Partners L.P. (EPD - Free Report) is scheduled to report third-quarter 2018 results on Oct 31, before the opening bell.
The midstream energy player beat the Zacks Consensus Estimate in three of the last four quarters. It delivered an average positive earnings surprise of 5.8% in the trailing four quarters. For the third quarter of 2018, the Zacks Consensus Estimate for earnings per unit is pegged at 45 cents, up 50% from the year-ago quarter.
Enterprise Products Partners L.P. Price and EPS Surprise
Enterprise Products Partners L.P. Price and EPS Surprise | Enterprise Products Partners L.P. Quote
Let’s see how things are shaping up for the upcoming quarterly release.
Why a Likely Positive Surprise?
Our proven model shows that Enterprise Products is likely to beat earnings estimates because it has the right combination of two key ingredients.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +3.06%. This is a very meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Enterprise Products carries a Zacks Rank #2 (Buy), which when combined with +3.06% ESP, makes us confident about an earnings beat.
Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What’s Driving the Better-Than-Expected Performance?
The Zacks Consensus Estimate for gross operating margin from the NGL Pipeline & Services segment is pegged at $924 million for the third quarter, higher than the last reported quarter’s $914 million and the year-ago quarter’s $771 million. NGL pipeline transportation volumes for the quarter are expected at 3,450 thousand barrels per day (MBPD), higher than the year-ago period’s 3,052 MBPD.
The Natural Gas Pipeline and Servicessegment is expected to come up with gross operating margin of around $208 million compared with the year-ago period’s $171 million. Natural gas pipeline transportation volumes for the third quarter are expected at 13,586 billion British thermal units per day (BBtus/d), higher than the year-ago figure of 12,376 BBtus/d.
The Zacks Consensus Estimate for gross operating margin from the Crude Oil Pipelines & Services segment is pegged at $395 million for the third quarter, higher than the last reported quarter’s $53 million and the year-ago quarter’s $190 million. Crude oil pipeline transportation volumes are expected to be 2,065 MBPD in the quarter, higher than the year-ago period’s 1,458 MBPD.
The Zacks Consensus Estimate for gross operating margin from the Petrochemical & Refined Product Services unit is pegged at $259 million, up from $172 million in the third quarter of 2017. Petrochemical transportation volumes are expected at 786 MBPD in the third quarter, higher than the year-ago quarter’s 778 MBPD.
The above-mentioned parameters are expected to lead to a better-than-expected performance of Enterprise Products in the quarter to be reported.
Other Stocks to Consider
Here are some other companies from the energy sector, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:
Calgary, Canada-based Enbridge Inc. (ENB - Free Report) carries a Zacks Rank #1 and has an Earnings ESP of +5.67%. The company is anticipated to report quarterly results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Penn Virginia Corporation has a Zacks Rank #2 and an Earnings ESP of +6.38%. The company will report third-quarter earnings on Nov 14.
Woodlands, TX-based Anadarko Petroleum Corporation holds a Zacks Rank #2 and has an Earnings ESP of +2.19%. The company is scheduled to report third-quarter earnings on Oct 30.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>