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Energy Transfer (ET) to Report Q2 Earnings: What's in Store?

Zacks Equity Research

Energy Transfer LP ET is scheduled to release second-quarter 2019 results on Aug 7, after market close. This natural gas pipeline operator delivered a positive earnings surprise of 2.78% in the last reported quarter.

Factors at Play

Energy Transfer has midstream assets in major producing areas in the United States. This remains a positive for the to-be-reported quarter. The completion of new projects during the first half of 2019 will likely aid earnings in the second quarter. Energy Transfer’s diverse income sources, which are predominantly fee-based businesses, provide earnings visibility.

The Zacks Consensus Estimate for second-quarter total revenues and earnings per share is pegged at $14,321 million and 36 cents, indicating growth of 1.44% and 9.09%, respectively, from the year-ago reported figures.

What the Zacks Model Says

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

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP price-eps-surprise | Energy Transfer LP Quote

Earnings ESP: The firm has an Earnings ESP of -7.13%.

Zacks Rank: Energy Transfer currently carries a Zacks Rank #3. The favorable rank, when combined with a negative ESP, makes earnings surprise unlikely in the quarter to be reported.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) 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 that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

NuStar Energy L.P. NS is slated to release second-quarter 2019 numbers on Aug 8, before the market opens. It has an Earnings ESP of +14.58% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

PBF Logistics LP PBFX is set to release second-quarter 2019 results on Aug 1, before the market opens. It has an Earnings ESP of +10.81% and holds a Zacks Rank #3.

Enbridge Inc. ENB is scheduled to release second-quarter 2019 numbers on Aug 2. It has an Earnings ESP of +6.70% and carries a Zacks Rank #2.

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PBF Logistics LP (PBFX) : Free Stock Analysis Report
 
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