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Oil & Gas Pipeline Earnings to Watch on Jul 28: FI, TRP

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The second-quarter earnings season has just begun for the pipeline companies and we are yet to get a clear picture of the overall market condition. The opening was lukewarm at best as a major player in this space Kinder Morgan Inc. (KMI - Free Report) reported in-line numbers last week and slashed its capital expenditure guidance. Due to the prolonged weakness in commodity prices, dividend was also kept flat sequentially.

However, our bullishness for the pipeline space remains intact as the ramping up of oil production during the past few years has pushed the commodity market into the oversupply territory. This definitely calls for need of storage and transportation services. Overall, we can say that the second quarter brought back hopes for oil that fell to its 12-year low of $26.21 in February. Subsequently, supply outages round the globe pushed the price of the commodity by almost 90%, taking it past the $50 per barrel mark.

The prevailing trend in the oil and energy sector is well outlined in the Earnings Trends report. As of Thursday, Jul 21, 8.1% of the oil and energy companies had reported second-quarter earnings results. These stocks account for 6.9% of the total market capitalization. Total earnings for these index members plunged 64.0% from the year-ago period while revenues declined 26.6%. We now wait to see how other energy sector bigwigs like ConocoPhillips (COP - Free Report) and ExxonMobil Corp (XOM - Free Report) perform when they report their results later this week.

Let’s take a look at the expected earnings performance of two pipeline companies that are scheduled to post second-quarter earnings results on Jul 28.

Franks International NV (FI - Free Report) has an Earnings ESP of -100.00% and Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Also, an ESP of -100.00% also makes surprise prediction difficult.

Last quarter, the company had delievered an earnings surprise of -100.00%. Moreover, the company missed the Zacks Consensus Estimate in three of the last four quarters.
 

FRANKS INTL NV Price and EPS Surprise

FRANKS INTL NV Price and EPS Surprise | FRANKS INTL NV Quote

TransCanada Corporation (TRP - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). Though a favorable Zacks Rank increases the predictive power of ESP, an ESP of 0.00% makes surprise prediction difficult.

Last quarter, the company had reported earnings of 51 cents per share, below the Zacks Consensus Estimate of 54 cents. This had resulted in an earnings surprise of -5.56%. However, the company outpaced the Zacks Consensus Estimate in two of the last four quarters.

 

 

TRANSCDA CORP Price and EPS Surprise

TRANSCDA CORP Price and EPS Surprise | TRANSCDA CORP Quote

Don’t miss out on our full earnings release articles for these oil & gas pipeline stocks, as the actual results might hold some surprises!

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