Back to top

Image: Shutterstock

Enterprise (EPD) to Report Q3 Earnings: What's in Store?

Read MoreHide Full Article

Enterprise Products Partners L.P. (EPD - Free Report) is set to report third-quarter 2023 results on Oct 31, before the opening bell.

In the last reported quarter, the midstream energy player’s adjusted earnings of 57 cents per share missed the Zacks Consensus Estimate of 59 cents owing to lower average sales margins and declining sales volumes from the NGL Pipelines & Services business unit.

Enterprise’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 2.9 %. This is depicted in the graph below:

Let’s delve into the factors that are expected to have influenced EPD’s performance in the soon-to-be-reported quarter.

Estimate Trend

The Zacks Consensus Estimate for third-quarter earnings witnessed one downward revision in the past 30 days. It is currently pegged at 63 cents per share.

The consensus mark for revenues is pinned at $12.3 billion, implying a 20.2% year-over-year decline.

Factors to Consider

Enterprise Products is likely to have generated stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.

However, since oil and gas prices were not as healthy as in the third quarter of 2022, demand for midstream assets is likely to have lowered following reduced production of the commodities. This, in turn, is expected to have hurt the total segment gross operating margin. We expect EPD’s total segment gross operating margin to decline 1.8% year over year.

Earnings Whisper

Our proven model does not indicate an earnings beat for Enterprise Products 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. But that is not the case here.

Earnings ESP: Enterprise has an Earnings ESP of -5.85%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some firms worth considering, as these have the right combination of elements to beat on earnings in the upcoming quarterly reports:

Viper Energy Partners LP (VNOM - Free Report) currently has an Earnings ESP of +15.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting a decline from the year-ago figure.

Antero Resources Corporation (AR - Free Report) has an Earnings ESP of +1,219.97% and is currently a Zacks #3 Ranked player.

The company is scheduled to release third-quarter results on Oct 25.

Antero Midstream Corporation (AM - Free Report) has an Earnings ESP of +8.17% and is a Zacks #2 Ranked player at present.

Antero Midstream is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for AM’s earnings is pegged at 21 cents per share, suggesting a year-over-year improvement of 5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in