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

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Enbridge Inc. (ENB - Free Report) is set to report third-quarter 2022 results on Nov 4, before the opening bell.

In the last reported quarter, the leading North American energy infrastructure company’s adjusted earnings per share of 53 cents missed the Zacks Consensus Estimate of earnings of 56 cents due to lower contributions from the company’s Energy Services, and Gas Transmission and Midstream businesses. The negatives were partially offset by higher contributions from the Liquids Pipelines segment.

In the trailing four quarters, Enbridge beat the Zacks Consensus Estimate for earnings once and missed the same thrice, delivering a negative surprise of 4%, on average. This is depicted in the graph below:

Enbridge Inc Price and EPS Surprise

 

Enbridge Inc Price and EPS Surprise

Enbridge Inc price-eps-surprise | Enbridge Inc Quote

Estimate Trend

The Zacks Consensus Estimate for the company’s third-quarter earnings per share of 50 cents has witnessed no upward revision and three downward movements in the past 30 days. The figure suggests growth of 6.4% from the year-ago reported number.

Factors to Consider

In the September-end quarter, Enbridge is likely to have generated stable fee-based revenues as it is a leading midstream player in North America. It has a vast pipeline network responsible for transporting roughly 30% of the crude oil produced in the continent. With the favorable crude price scenario, exploration and production activities are expected to have ramped up in the third quarter. Thus, higher production is likely to have driven the demand for the company’s oil pipeline.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Enbridge 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. As you can see, that is not the case here.

Earnings ESP: Enbridge has an Earnings ESP of -3.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Enbridge currently carries a Zacks Rank #4 (Sell).

Stocks That Warrant a Look

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +2.74% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cactus is scheduled to release third-quarter earnings on Nov 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 49 cents per share, suggesting an increase of 157.9% from the prior-year quarter’s reported figure.

New Fortress Energy LLC (NFE - Free Report) has an Earnings ESP of +14.38% and a Zacks Rank of 3.

New Fortress Energy is scheduled to report third-quarter results on Nov 8. The Zacks Consensus Estimate for NFE’s earnings is pegged at $1 per share, suggesting a significant increase from the prior-year reported figure.

Diamondback Energy (FANG - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank of 3.

Diamondback Energy is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s quarterly earnings is pegged at $6.45 per share, suggesting an increase of 119.4% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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