Plains GP Holdings, L.P. PAGP is scheduled to release second-quarter 2019 results on Aug 6, after market close. In the last reported quarter, the firm delivered a positive earnings surprise of 113.95%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Plains GP is strategically placed to capture North American production growth. This is a positive for the quarter to be reported. Well spread-out assets in the Permian Basin will enable the firm to benefit from increasing production volumes in this region.
The Zacks Consensus Estimate for second-quarter revenues and earnings per unit is pegged at $10,186 million and 30 cents, indicating 26.06% and 500% growth, respectively, from the year-ago reported figures.
What Our Quantitative Model Indicates
A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. However, Plains GP Holdings does not have the required combination, as elaborated below.
Earnings ESP: The firm has an Earnings ESP of -14.29%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Plains Group Holdings, L.P. Price and EPS Surprise
Plains Group Holdings, L.P. price-eps-surprise | Plains Group Holdings, L.P. Quote
Zacks Rank: It currently sports a Zacks Rank #1. The positive rank of the firm, when combined with -14.29% ESP, makes an earnings beat unlikely in the to-be-reported quarter.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some players from the same industry that are worth considering, as these have the right combination of elements to deliver an earnings beat in the upcoming releases.
EQM Midstream Partners, LP EQM is set to release second-quarter results on Jul 30. It has an Earnings ESP of +13.92% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Holly Energy Partners, L.P. HEP is expected to release second-quarter results on Jul 31. It has an Earnings ESP of +1.18% and a Zacks Rank #2.
Enbridge Inc. ENB is scheduled to release second-quarter results on Aug 2. It has an Earnings ESP of +6.70% and a Zacks Rank of 3.
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