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Pembina Pipeline to Report Q3 Earnings: What's in Store for the Stock?

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Pembina Pipeline Corporation (PBA - Free Report) is set to release third-quarter results on Nov. 5, 2024. The Zacks Consensus Estimate for earnings is pegged at 56 cents per share and that for revenues is pinned at $1.48 billion.

Let us delve into the factors that are likely to have influenced the oil and gas storage and transportation service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at Pembina’s performance in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
 

Highlights of PBA’s Q2 Earnings

In the last reported quarter, the Calgary-based energy transportation and midstream services company’s earnings were in line with the consensus mark thanks to year-over-year growth from its Pipelines, Facilities and Marketing & New Ventures segments. However, revenues of $1.36 billion missed the Zacks Consensus Estimate of $1.44 billion.

PBA beat the Zacks Consensus Estimate for earnings thrice in the trailing four quarters while missing once. The earnings surprise was 11.46%, on average.

This is depicted in the graph below:

Pembina Pipeline Corp. Price and EPS Surprise

Pembina Pipeline Corp. Price and EPS Surprise

Pembina Pipeline Corp. price-eps-surprise | Pembina Pipeline Corp. Quote


PBA’s Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter 2024 earnings has witnessed an upward revision and two downward movements in the past 30 days. The estimated figure indicates a 13.42% year-over-year decrease. The Zacks Consensus Estimate for revenues indicates a 33.33% increase from the year-ago period.
 

Factors to Consider for PBA’s Q3 Performance

PBA’s revenues are expected to have deteriorated in the quarter to be reported.  The company generates income by transporting oil and gas. It has pipelines, storage facilities and processing plants, charging companies to use these facilities for moving and processing energy products.

Our model predicts third-quarter revenues to have decreased to $1479.3 million from the year-ago quarter’s $1709 million. PBA’s Pipelines segment is projected to have generated C$643.1 million, down from C$734 million in the year-ago quarter.  In contrast, the Facilities segment is expected to have reached C$211.9 million, down from C$233 million in the year-ago quarter. The Marketing & New Ventures segment is anticipated to have generated C$944.8 million, a decrease from C$1512 million at the same time.

On a positive note, the reduction in PBA's expenses is expected to have positively influenced its bottom-line performance. The company’s cost of sales is anticipated to have been C$743.7 million in the third quarter, reflecting a 53.3% decrease from the year-ago quarter’s C$1592 million. Similarly, depreciation and amortization are expected to have reached C$140.5 million compared with C$164 million in the year-ago quarter.
 

What Does Our Model Predict for PBA?

The proven Zacks model does not conclusively predict an earnings beat for Pembina Pipeline 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. However, that is not the case here.

PBA’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.04%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank of PBA:  PBA currently carries a Zacks Rank #3.
 

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this season.

Cheniere Energy, Inc. (LNG - Free Report) has an Earnings ESP of +12.21% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on Oct. 31. LNG’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the other two, delivering an average surprise of 55.86%. Valued at around $41.54 billion, LNG has gained 9.7% in a year.

Helmerich & Payne (HP - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Nov. 13.

HP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the remaining one, delivering an average surprise of 14.79%. It is engaged in the contract drilling of oil and gas wells in the United States and internationally.

TC Energy Corporation (TRP - Free Report) has an Earnings ESP of +2.84% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Nov. 7. Valued at around $48.56 billion, TRP has gained 34.4% in a year.

The company is primarily focused on natural gas transmission through its 57,500-mile network of pipelines located in Canada, the United States and Mexico. TC Energy is also involved in other businesses, including power generation, natural gas storage and crude oil pipelines.

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