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Here's Why Enbridge (ENB) is Likely to Beat Earnings in Q4
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Enbridge Inc. (ENB - Free Report) is scheduled to report fourth-quarter 2021 earnings on Feb 11, before the opening bell.
In the last reported quarter, the leading energy infrastructure company’s adjusted earnings per share of 47 cents beat the Zacks Consensus Estimate by a penny. The outperformance was driven by increased contributions from Mainline System, Regional Oil Sands System, Gulf Coast and Mid-Continent System.
Let’s see how things have shaped up prior to the announcement.
The midstream energy firm beat the consensus estimate in three of the prior four quarters and missed the same once, the average earnings surprise being 7.84%. This is depicted in the graph below:
The Zacks Consensus Estimate for fourth-quarter earnings of 61 cents has not witnessed any upward revision and downward movement in the past 60 days. The figure suggests a year-over-year increase of 42%.
The Zacks Consensus Estimate for revenues is pegged at $10.1 billion for the quarter, indicating an increase from the year-ago reported figure of $7.7 billion.
What the Quantitative Model Suggests
Our proven model predicts an earnings beat for Enbridge this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Enbridge has an Earnings ESP of +1.22%. This is because the Most Accurate Estimate of 62 cents for the quarter is currently pegged higher than the Zacks Consensus Estimate of 61 cents per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Enbridge currently carries a Zacks Rank #3 (Hold).
Factors to Consider
Enbridge, a leading North American midstream energy firm, is likely to have generated stable fee-based revenues in the fourth quarter from its massive crude and liquids pipeline system that spreads across 17,127 miles.
The price of West Texas Intermediate crude was hovering around $80 per barrel in the December-end quarter. In comparison with the year-ago quarter, the commodity price has improved significantly. Rising commodity prices have changed the playing area for the midstream space in the fourth quarter. With continuing growth in energy demand, the company’s pipelines are expected to have seen higher utilization of midstream assets.
The favorable commodity pricing scenario and strong recovery in energy demand are expected to have triggered higher activities in the North America upstream market. This, in turn, is expected to have boosted Enbridge’s profits in the quarter from the year-ago period.
Other Stocks That Warrant a Look
Here are some other firms that you may want to consider as these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Marathon Oil is scheduled to release its fourth-quarter earnings on Feb 16. The Zacks Consensus Estimate for MRO’s earnings is pegged at 55 cents per share, suggesting a massive improvement from the prior-year reported figure.
Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.64% and is a Zacks #3 Ranked player at present.
Devon Energy is scheduled to release the fourth-quarter results on Feb 15. The Zacks Consensus Estimate for DVN’s quarterly earnings is pegged at $1.21 per share, suggesting a significant increase from the prior-year reported figure.
PBF Energy (PBF - Free Report) has an Earnings ESP of +22.25% and is a Zacks #3 Ranked player at present.
PBF Energy is scheduled to release the fourth-quarter results on Feb 10. The Zacks Consensus Estimate for PBF’s quarterly earnings is pegged at 53 cents per share, suggesting a massive increase from the prior-year reported figure.
Image: Bigstock
Here's Why Enbridge (ENB) is Likely to Beat Earnings in Q4
Enbridge Inc. (ENB - Free Report) is scheduled to report fourth-quarter 2021 earnings on Feb 11, before the opening bell.
In the last reported quarter, the leading energy infrastructure company’s adjusted earnings per share of 47 cents beat the Zacks Consensus Estimate by a penny. The outperformance was driven by increased contributions from Mainline System, Regional Oil Sands System, Gulf Coast and Mid-Continent System.
Let’s see how things have shaped up prior to the announcement.
The midstream energy firm beat the consensus estimate in three of the prior four quarters and missed the same once, the average earnings surprise being 7.84%. This is depicted in the graph below:
Enbridge Inc Price and EPS Surprise
Enbridge Inc price-eps-surprise | Enbridge Inc Quote
Estimate Trend
The Zacks Consensus Estimate for fourth-quarter earnings of 61 cents has not witnessed any upward revision and downward movement in the past 60 days. The figure suggests a year-over-year increase of 42%.
The Zacks Consensus Estimate for revenues is pegged at $10.1 billion for the quarter, indicating an increase from the year-ago reported figure of $7.7 billion.
What the Quantitative Model Suggests
Our proven model predicts an earnings beat for Enbridge this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Enbridge has an Earnings ESP of +1.22%. This is because the Most Accurate Estimate of 62 cents for the quarter is currently pegged higher than the Zacks Consensus Estimate of 61 cents per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Enbridge currently carries a Zacks Rank #3 (Hold).
Factors to Consider
Enbridge, a leading North American midstream energy firm, is likely to have generated stable fee-based revenues in the fourth quarter from its massive crude and liquids pipeline system that spreads across 17,127 miles.
The price of West Texas Intermediate crude was hovering around $80 per barrel in the December-end quarter. In comparison with the year-ago quarter, the commodity price has improved significantly. Rising commodity prices have changed the playing area for the midstream space in the fourth quarter. With continuing growth in energy demand, the company’s pipelines are expected to have seen higher utilization of midstream assets.
The favorable commodity pricing scenario and strong recovery in energy demand are expected to have triggered higher activities in the North America upstream market. This, in turn, is expected to have boosted Enbridge’s profits in the quarter from the year-ago period.
Other Stocks That Warrant a Look
Here are some other firms that you may want to consider as these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Marathon Oil Corporation (MRO - Free Report) has an Earnings ESP of +4.66% and it flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Oil is scheduled to release its fourth-quarter earnings on Feb 16. The Zacks Consensus Estimate for MRO’s earnings is pegged at 55 cents per share, suggesting a massive improvement from the prior-year reported figure.
Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.64% and is a Zacks #3 Ranked player at present.
Devon Energy is scheduled to release the fourth-quarter results on Feb 15. The Zacks Consensus Estimate for DVN’s quarterly earnings is pegged at $1.21 per share, suggesting a significant increase from the prior-year reported figure.
PBF Energy (PBF - Free Report) has an Earnings ESP of +22.25% and is a Zacks #3 Ranked player at present.
PBF Energy is scheduled to release the fourth-quarter results on Feb 10. The Zacks Consensus Estimate for PBF’s quarterly earnings is pegged at 53 cents per share, suggesting a massive increase from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.