A month has gone by since the last earnings report for Enterprise Products Partners (EPD Quick QuoteEPD - Free Report) . Shares have added about 0% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Enterprise Products due for a pullback? Before we dive into how investors and analysts have reacted as 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.

Enterprise’s Q3 Earnings & Revenues Beat Estimates

Enterprisereported third-quarter 2022 adjusted earnings per limited partner unit of 63 cents, beating the Zacks Consensus Estimate of 61 cents. The bottom line improved from the year-ago quarter’s 52 cents per share.

Total quarterly revenues of $15,468 million surpassed the Zacks Consensus Estimate of $13,847 million. The top line significantly increased from $10,831 million in the prior-year quarter.

The strong results were driven by higher contributions from the NGL Pipelines & Services business.

Segmental Performance

Pipeline volumes in NGL, crude oil, refined products and petrochemicals were recorded at 6.7 million barrels per day (bpd), slightly higher than the year-ago quarter’s 6.3 million bpd. Natural gas pipeline volumes were 17.5 trillion British thermal units per day (TBtus/d), up from 14.6 TBtus/d a year ago. Also, marine terminal volumes increased to 1.7 million bpd from 1.5 million bpd.

Gross operating income at NGL Pipelines & Services increased from $1,023 million in the year-ago quarter to $1,296 million, primarily due to higher NGL pipeline transportation volumes.

Natural Gas Pipelines and Services’ gross operating income increased to $278 million from $223 million in the year-ago quarter. The upside was due to an increase in natural gas pipeline transportation volumes.

Crude Oil Pipelines & Services recorded a gross operating income of $415 million, which decreased from $423 million in the prior-year quarter.

Gross operating income at Petrochemical & Refined Products Services amounted to $353 million compared with $411 million a year ago, primarily due to lower gross operating margin from propylene production and related activities.

Cash Flow

Adjusted distributable cash flow was $1,868 million, up from $1,613 million a year ago, and provided coverage of 1.8X. The partnership retained $826 million of distributable cash flow in the September quarter. It generated an adjusted free cash flow of $1,476 million compared with $1,191 million in the year-ago quarter.

Financials

For third-quarter 2022, Enterprise’s total capital investment was $474 million.

As of Sep 30, 2022, its outstanding total debt principal was $29.5 billion. Enterprise’s consolidated liquidity amounted to $3.3 billion. The total liquidity amount included unrestricted cash on hand and available borrowing capacity under its revolving credit facility.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Enterprise Products has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Enterprise Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.