Energy Transfer LP (ET) shares rallied 7% in the last trading session to close at $9.84. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.8% gain over the past four weeks.
Energy Transfer’s first quarter earnings per unit and total revenues were better than expected. The firm’s results also improved year-over-year due to the positive impact of winter storm in its service territories. The firm enjoyed the benefit of regular investment to strengthen its infrastructure and was able to provide energy to help meet critical needs throughout the storm.
The Partnership’s multiple segments generate high-quality, balanced earnings and a substantial portion of its segment margins are fee-based and therefore have limited commodity price sensitivity. The firm plans to invest more than $1.6 billion on growth capital expenditure in 2021 to strengthen its existing operation.
Price and Consensus
This energy-related services provider is expected to post quarterly earnings of $0.21 per unit in its upcoming report, which represents a year-over-year change of +61.5%. Revenues are expected to be $11.06 billion, up 50.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Energy Transfer LP, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ET going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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