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Enterprise (EPD) to Post Q1 Earnings: What's in the Offing?

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Enterprise Products Partners L.P. (EPD - Free Report) is set to report first-quarter 2024 results on Apr 30, before the opening bell.

In the last reported quarter, Enterprise Products’ strong quarterly results were backed by improved margins in its propylene and octane enhancement businesses. The leading midstream energy player beat the Zacks Consensus Estimate for earnings in two of the prior four quarters and missed the same twice, delivering an average surprise of 1.04%.

Estimate Trend

The Zacks Consensus Estimate for EPD’s first-quarter earnings witnessed no revisions in the past 30 days. It is pegged at 64 cents per share, almost the same as the year-ago reported figure.

The consensus mark for revenues is pinned at $13.4 billion, implying an 8% year-over-year improvement.

Factors to Consider

Enterprise Products has a stable business model and is not significantly exposed to the volatility in oil and gas prices. It is likely to have generated stable fee-based revenues from its extensive pipeline network spread across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.

The midstream infrastructure provider also has storage assets that can hold more than 300 million barrels of NGL, petrochemicals, refined products and crude oil. These assets can store 14 billion cubic feet of natural gas, which is likely to have led to handsome cashflows.

However, the partnership is expected to have been adversely impacted by declining contributions from NGL Pipelines & Services businesses due to lower average sales margins and sales volumes.

Earnings Whisper

Our proven model does not conclusively predict 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: EPD has an Earnings ESP of 0.00%. 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:

MPLX LP (MPLX - Free Report) has an Earnings ESP of +3.78% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 30.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The 2024 Zacks Consensus Estimate for MPLX indicates 8.8% year-over-year earnings per unit growth. It has a trailing four-quarter earnings surprise of 7.3%, on average.

ExxonMobil (XOM - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 26.

The 2024 Zacks Consensus Estimate for ExxonMobil indicates a 22.6% year-over-year earnings per share decline.

DT Midstream (DTM - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #2. The firm is scheduled to release earnings on Apr 30.

DT Midstream beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of 9.8%, on average.

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

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