Enbridge (ENB) to Report Q3 Earnings: What's in the Offing?
Enbridge Inc. ENB is set to report third-quarter 2023 results on Nov 3, before the opening bell.
In the last reported quarter, the midstream energy player’s earnings of 51 cents per share met the Zacks Consensus Estimate, thanks to higher contributions from the Liquids Pipelines segment.
Enbridge’s earnings beat estimates in two of the trailing four quarters, met once and missed on one occasion, delivering an average negative earnings surprise of 3.6%. This is depicted in the graph below:
Enbridge Inc Price and EPS Surprise
Enbridge Inc price-eps-surprise | Enbridge Inc Quote
Estimate Trend
The Zacks Consensus Estimate for third-quarter earnings witnessed two downward revisions in the past 30 days. It is currently pegged at 43 cents per share.
The consensus mark for revenues stands at $7.9 billion, implying a year-over-year decline of 11.2%.
Factors to Consider
Enbridge's business model remains stable due to the majority of its midstream assets being supported by long-term contracts, which is expected to have resulted in consistent fee-based revenue generation in the third quarter. In fact, the overall business was less exposed to commodity price volatility. However, gas distribution costs are likely to have increased, thanks to the highly inflationary business scenario. We expect gas distribution costs to have increased 130.4% year over year in the third quarter.
Earnings Whisper
Our proven model does not predict an earnings beat for Enbridge 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: Enbridge has an Earnings ESP of -1.54%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Enbridge 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:
Cenovus Energy Inc. CVE currently has an Earnings ESP of +6.53% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for CVE’s earnings is pegged at 59 cents per share, suggesting a decline from the prior-year reported figure.
Devon Energy Corp. DVN has an Earnings ESP of +0.72% and is currently a Zacks #2 Ranked player.
The company is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for DVN’s earnings is pegged at $1.55 per share.
ConocoPhillips COP has an Earnings ESP of +0.50% and is a Zacks #2 Ranked player at present.
ConocoPhillips is scheduled to release third-quarter results on Nov 2. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.04 per share, suggesting a significant year-over-year decline.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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