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Energy Transfer (ET) to Post Q4 Earnings: What's in Store?

Zacks Equity Research

Energy Transfer LP ET is scheduled to release fourth-quarter 2018 results on Feb 20, after market close. This natural gas pipeline operator delivered average negative earnings surprise of 13.65% in the last four reported quarters.

Factors at Play

Energy Transfer invested a substantial amount in organic growth projects, primarily in the NGL and refined products, as well as midstream segments. Contribution from the Bakken crude oil pipeline is likely to boost its earnings.

The assets of the partnership are major producing areas in the United States, which will also likely aid earnings.

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP Price and EPS Surprise | Energy Transfer LP Quote

What Does the Zacks Model Say?

Our proven model shows that Energy Transfer is unlikely to beat estimates in the upcoming quarterly results. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. It does not have the right mix as shown below. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Earnings ESP: The company has an Earnings ESP of +2.48%.

Zacks Rank: Energy Transfer currently carries a Zacks Rank #5 (Strong Sell). We caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Investors can consider the following players from the same sector, as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Sunoco LP SUN is expected to release fourth-quarter 2018 numbers on Feb 20, after market close. It has an Earnings ESP of +26.89% and carries a Zacks Rank #2.

Halcon Resources Corp. HK is expected to release fourth-quarter 2018 results on Mar 1. It has an Earnings ESP of +37.93% and holds a Zacks Rank #3.

Cheniere Energy, Inc. LNG is expected to release fourth-quarter 2018 numbers on Feb 26. It has an Earnings ESP of +84.51% and carries a Zacks Rank #3.

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Sunoco LP (SUN) : Free Stock Analysis Report
 
Halcon Resources Corporation (HK) : Free Stock Analysis Report
 
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
 
Energy Transfer LP (ET) : Free Stock Analysis Report
 
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