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Enbridge (ENB) to Report Q4 Earnings: What's in the Cards?

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Enbridge Inc. (ENB - Free Report) is slated to report fourth-quarter 2020 results on Feb 12, before the opening bell.

In the last-reported quarter, the company came up with earnings of 36 cents per share, missing the Zacks Consensus Estimate of 40 cents owing to a drop in Mainline System throughput. However, this leading North American energy infrastructure company has an average earnings surprise of 0.9% for the past four quarters.

Enbridge Inc Price and EPS Surprise

 

Enbridge Inc Price and EPS Surprise

Enbridge Inc price-eps-surprise | Enbridge Inc Quote

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

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings per share of 46 cents has witnessed three downward revisions in the past 30 days.

Factors to Consider

Enbridge is a leading energy infrastructure player in North America and is likely to have generated stable fee-based revenues in the December quarter. Notably, the midstream company has a huge pipeline network that transports as high as 25% of crude oil that is produced in North America.

Moreover, the company is involved in transporting 20% of natural gas that is consumed in the United States. In Ontario and Quebec, Enbridge serves a hefty 3.8 million retail customers through its Gas Distribution and Storage business. Thus, being a leading midstream firm, the company’s operations were not significantly exposed to coronavirus-induced commodity price volatility and are likely to have generated handsome cashflow.

However, as compared to the pre-pandemic fourth quarter of 2019, demand for the company’s midstream assets was lower since upstream companies are likely to have seen a drop in oil and gas production as the business scenario was relatively weak.

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 -0.14%. 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:

Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +8.58% and a Zacks Rank #2. The company is scheduled to release quarterly earnings on Feb 22. You can see the complete list of today’s Zacks #1 Rank stocks here.

Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #1. The company is scheduled to release quarterly earnings on Feb 16.

Continental Resources, Inc.  has an Earnings ESP of +17.97% and a Zacks Rank of 2. It is scheduled to report fourth-quarter results on Feb 16.

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