Enterprise (EPD) to Report Q4 Earnings: What's in the Offing?
Enterprise Products Partners L.P. EPD is set to report fourth-quarter 2023 results on Feb 1, before the opening bell.
Let’s delve into the factors that are anticipated to have influenced this pipeline operator’s performance in the to-be-reported quarter. However, it is worth taking a look at EPD’s previous quarter’s results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the midstream energy player’s adjusted earnings of 60 cents missed the Zacks Consensus Estimate of 63 cents due to lower natural gas gathering and processing margins.
In the trailing four quarters, Enterprise’s earnings beat the Zacks Consensus Estimate twice and missed the same twice, delivering an average surprise of 0.85%. This is depicted in the graph below:
Enterprise Products Partners L.P. Price and EPS Surprise
Enterprise Products Partners L.P. price-eps-surprise | Enterprise Products Partners L.P. Quote
Let’s delve into the factors that are expected to have influenced EPD’s performance in the soon-to-be-reported quarter.
Estimate Trend
The Zacks Consensus Estimate for EPD’s fourth-quarter earnings witnessed no upward and downward revision in the past 30 days. It is pegged at 66 cents per share, indicating 1.5% growth from the year-ago reported figure.
The consensus mark for revenues is pinned at $12.8 billion, implying a 6.6% year-over-year decline.
Factors to Consider
Enterprise Products is likely to have generated stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
The Zacks Consensus Estimate for Enterprise’s equivalent pipeline transportation volumes for the fourth quarter is pegged at $11,968 million barrels per day, suggesting an increase from the $11,518 million barrels per day reported in the prior-year quarter.
However, since oil and gas prices were not as healthy as in the fourth quarter of 2022, the demand for midstream assets is likely to have declined following the reduced production of the commodities. This, in turn, is expected to have hurt the total segment gross operating margin.
The Zacks Consensus Estimate for the gross operating margin from Enterprise’s Natural gas pipeline services segment for the fourth quarter is pegged at $282 million, suggesting a decline from the $315 million reported in the prior-year quarter.
Also, the Zacks Consensus Estimate for the gross operating margin from Enterprise’s NGL Pipelines & Services segment for the fourth quarter is pegged at $1,249 million, suggesting a decline from the $1,294 million reported in the prior-year quarter.
Earnings Whisper
Our proven model does not conclusively predict an earnings beat for Enterprise Products 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: Enterprise has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both are pegged at earnings of 66 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company 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:
Marathon Petroleum MPC currently has an Earnings ESP of +2.21% 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 fourth-quarter earnings on Jan 30. The Zacks Consensus Estimate for MPC’s earnings is pegged at $2.36 per share, suggesting a 64.5% decline from the year-ago reported figure.
Exxon Mobil Corporation XOM has an Earnings ESP of +0.48% and is currently a Zacks #3 Ranked player.
The company is scheduled to release fourth-quarter results on Feb 2. The Zacks Consensus Estimate for XOM’s earnings is pegged at $2.21 per share, suggesting a 35% decline from the year-ago reported figure.
USA Compression Partners, LP USAC has an Earnings ESP of +4.35% and is a Zacks #2 Ranked player at present.
USA Compression Partners is scheduled to release fourth-quarter results on Feb 13. The Zacks Consensus Estimate for USAC’s earnings is pegged at 12 cents per share, suggesting a year-over-year improvement of 400%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
USA Compression Partners, LP (USAC) : Free Stock Analysis Report
