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Enbridge (ENB) Q2 Earnings Beat & Revenues Lag Estimates

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Enbridge Inc. (ENB - Free Report) reported second-quarter 2018 earnings per share of 62 cents, beating the Zacks Consensus Estimate of 42 cents. The bottom line also increased from the year-ago quarter’s 30 cents.

Enbridge Inc Price, onsensus and EPS Surprise


Enbridge Inc Price, Consensus and EPS Surprise | Enbridge Inc Quote

Total revenues in the quarter rose 0.8% year over year to $8,327 million. The top line, however, failed to beat the Zacks Consensus Estimate of $9,857 million.

The company reported higher-than-expected results in second-quarter 2018 owing to higher throughput volumes from the Canadian Mainline and Lakehead System along with higher income from all of the company's business units and synergy benefits from the acquisition of Spectra Energy.

Segment Analysis

Liquids Pipelines: Adjusted operating income at this segment was C$1,629 million, up almost 23% from C$1,324 million a year ago. Higher throughput volumes from the Canadian Mainline and Lakehead System led to the improvement. Higher contracted volumes on Flanagan South contributed to higher income at the Gulf-Coast and Mid-Continent.

Gas Transmission and Midstream: The segment reported earnings of C$1,032 million, increased from C$917 million in second-quarter 2017. Contributions from acquisitions and new projects drove the results. Increased contributions from Alliance Pipeline also led to the growth.

Gas Distribution: This business unit reported profit of C$369 million, up more than 19% from C$310 million in the April-June 2017 quarter. Higher volumes and rise in demand from active customers supported the growth.

Green Power and Transmission: This segment saw earnings of C$125 million, higher than C$101 million recorded in the prior-year quarter.

Energy Services: The segment reported earnings of C$62 million against a loss of C$3 million in first-quarter 2017.

Total Expenses

During the second quarter, the company reported total expenses of C$9,174 million, down 2.7% from C$9,432 million recorded in the April-June quarter of 2017.

Q2 Price Performance

Enbridge has outperformed the industry during the second quarter. The company’s shares returned 13.4% compared with the industry's 8% rise.


Zacks Rank and Stocks to Consider

Enbridge currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Canadian Natural Resources Limited (CNQ - Free Report) , China Petroleum and Chemical Corporation (SNP - Free Report) , also known as Sinopec, and SunrunInc. (RUN - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Natural Resources, based in Calgary, Alberta, is an exploration and production (E&P) company. It pulled off an average positive earnings surprise of 4.7% in the last four quarters.

Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.

Sunrun is engaged in offering solar services through various channels. The company delivered an average positive earnings surprise of 16.3% in the last four quarters.

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