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Enbridge (ENB) to Report Q3 Earnings: What's in the Cards?

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Enbridge Inc. (ENB - Free Report) is slated to report third-quarter 2020 results on Nov 6, before the opening bell.

In the last-reported quarter, the company came up with earnings of 41 cents per share, in line with the Zacks Consensus Estimate, thanks to higher contributions from the US Gas Transmission business and Hohe See offshore wind project. Notably, this leading North American energy infrastructure company has an average earnings surprise of 3.4% for the past four quarters.

Let’s see how things have shaped up prior to the announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of 40 cents has witnessed two upward and two downward revisions in the past 30 days. The consensus estimate indicates a 4.8% decline from the year-ago figure.

Factors to Consider

Enbridge has an extensive network of pipeline assets responsible for transportation of oil and natural gas. Notably, the company’s pipeline networks are involved in carrying as much as 25% of oil volumes produced in North America. The company also transports natural gas which represents 20% of the volumes consumed in the United States. Thus, the company has likely generated stable fee-based revenues from the midstream assets that are mostly being used by shippers for long term.

Notably, contributions from the pipeline networks are likely to decline as compared to the year-ago quarter since the volumes of oil and gas transported in the September quarter are expected to have declined owing to the coronavirus pandemic.

Earnings Whispers

Our proven model does not indicate an earnings beat for Enbridge. 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. That is not the case here as you will see below.    

Earnings ESP: The company’s Earnings ESP is -0.94% as the Most Accurate Estimate is pegged at 39 cents per share and the Zacks Consensus Estimate is pinned at 40 cents. 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 That Warrant a Look

Though an earnings beat looks uncertain for Enbridge, here are a few firms that you may want to consider on the basis of our model. These have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Sunoco LP (SUN - Free Report) has an Earnings ESP of +1.00% and is a Zacks #2 Ranked player. The partnership is scheduled to release third-quarter results on Nov 4. You can see the complete list of today’s Zacks #1 Rank stocks here.

NuStar Energy L.P.  has an Earnings ESP of +2.94% and a Zacks Rank #2. The partnership is scheduled to release earnings on Nov 5.

DCP Midstream Partners, LP has an Earnings ESP of +4.77% and a Zacks Rank #2. The partnership is scheduled to release third-quarter earnings on Nov 4.

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