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Is Magellan (MMP) Poised for Another Earnings Beat in Q4?
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Magellan Midstream Partners, L.P. is set to release fourth-quarter results on Feb 2. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.31 per unit on revenues of $855.7 million.
Let’s delve into the factors that are expected to have influenced the energy infrastructure provider’s performance in the December quarter. But it is worth taking a look at MMP’s previous quarter's performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, this Tulsa, OK-based midstream operator beat the consensus mark primarily on higher crude oil volumes shipped. Magellan Midstream had reported adjusted net income per unit of $1.29, surpassing the Zacks Consensus Estimate of $1.14. Revenues of $876.1 million also beat the Zacks Consensus Estimate by 19.4%.
MMP beat the Zacks Consensus Estimate in each of the last four quarters, which resulted in an earnings surprise of 9.7%, on average. This is depicted in the graph below:
Magellan Midstream Partners, L.P. Price and EPS Surprise
The Zacks Consensus Estimate for the second-quarter bottom line has been unchanged in the past seven days. The estimated figure indicates a 5.7% year-over-year improvement. The Zacks Consensus Estimate for revenues also suggests a 5.7% increase from the year-ago period's reported number.
Factors to Consider
Magellan Midstream is expected to have benefited from the increase in refined product tariff rates. The unit — the partnership’s largest — is also likely to have experienced higher long-haul shipments that command premium rates. Consequently, the consensus mark for Magellan Midstream’s fourth-quarter refined products operating margin is pegged at $329 million, up from the prior-year quarter’s reported level of $302.7 million.
MMP is also expected to reap the rewards of higher revenues from its core, fee-based transportation and terminals’ assets. Considering growing customer demand for the pasrtnership’s impressive portfolio, the Zacks Consensus Estimate for the fourth-quarter transportation and terminals’ revenues is pegged at $483 million, indicating a year-over-year increase of 3.5%.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Magellan Midstream this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Magellan Midstream has an Earnings ESP of +0.25% and a Zacks Rank #3.
Other Stocks to Consider
Magellan Midstream is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may also want to consider on the basis of our model:
Murphy USA (MUSA - Free Report) has an Earnings ESP of +35.37% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 1.
Murphy USA beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 51%, on average. Valued at around $6 billion, MUSA has gained 39.3% in a year.
Patterson-UTI Energy (PTEN - Free Report) has an Earnings ESP of +5.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 8.
Patterson-UTI Energy topped the Zacks Consensus Estimate by an average of 169.2% in the trailing four quarters, including a 47.4% beat in the last reported quarter. Valued at $3.7 billion, PTEN has gained 67.8% in a year.
Enterprise Products Partners L.P. (EPD - Free Report) has an Earnings ESP of +1.95% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 1.
For 2022, Enterprise Products Partners has a projected earnings growth rate of 17.6%. Valued at around $57 billion, EPD has gained 11.2% in a year.
Image: Bigstock
Is Magellan (MMP) Poised for Another Earnings Beat in Q4?
Magellan Midstream Partners, L.P. is set to release fourth-quarter results on Feb 2. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.31 per unit on revenues of $855.7 million.
Let’s delve into the factors that are expected to have influenced the energy infrastructure provider’s performance in the December quarter. But it is worth taking a look at MMP’s previous quarter's performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, this Tulsa, OK-based midstream operator beat the consensus mark primarily on higher crude oil volumes shipped. Magellan Midstream had reported adjusted net income per unit of $1.29, surpassing the Zacks Consensus Estimate of $1.14. Revenues of $876.1 million also beat the Zacks Consensus Estimate by 19.4%.
MMP beat the Zacks Consensus Estimate in each of the last four quarters, which resulted in an earnings surprise of 9.7%, on average. This is depicted in the graph below:
Magellan Midstream Partners, L.P. Price and EPS Surprise
Magellan Midstream Partners, L.P. price-eps-surprise | Magellan Midstream Partners, L.P. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line has been unchanged in the past seven days. The estimated figure indicates a 5.7% year-over-year improvement. The Zacks Consensus Estimate for revenues also suggests a 5.7% increase from the year-ago period's reported number.
Factors to Consider
Magellan Midstream is expected to have benefited from the increase in refined product tariff rates. The unit — the partnership’s largest — is also likely to have experienced higher long-haul shipments that command premium rates. Consequently, the consensus mark for Magellan Midstream’s fourth-quarter refined products operating margin is pegged at $329 million, up from the prior-year quarter’s reported level of $302.7 million.
MMP is also expected to reap the rewards of higher revenues from its core, fee-based transportation and terminals’ assets. Considering growing customer demand for the pasrtnership’s impressive portfolio, the Zacks Consensus Estimate for the fourth-quarter transportation and terminals’ revenues is pegged at $483 million, indicating a year-over-year increase of 3.5%.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Magellan Midstream this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Magellan Midstream has an Earnings ESP of +0.25% and a Zacks Rank #3.
Other Stocks to Consider
Magellan Midstream is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may also want to consider on the basis of our model:
Murphy USA (MUSA - Free Report) has an Earnings ESP of +35.37% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 51%, on average. Valued at around $6 billion, MUSA has gained 39.3% in a year.
Patterson-UTI Energy (PTEN - Free Report) has an Earnings ESP of +5.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 8.
Patterson-UTI Energy topped the Zacks Consensus Estimate by an average of 169.2% in the trailing four quarters, including a 47.4% beat in the last reported quarter. Valued at $3.7 billion, PTEN has gained 67.8% in a year.
Enterprise Products Partners L.P. (EPD - Free Report) has an Earnings ESP of +1.95% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 1.
For 2022, Enterprise Products Partners has a projected earnings growth rate of 17.6%. Valued at around $57 billion, EPD has gained 11.2% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.