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Can Enterprise (EPD) Keep Earnings Beat Streak Alive in Q1?

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Enterprise Products Partners LP (EPD - Free Report) is set to report first-quarter 2023 results on May 2, before the opening bell. 

In the last reported quarter, the midstream infrastructure provider’s adjusted earnings per limited partner unit of 65 cents beat the Zacks Consensus Estimate of 60 cents, owing to higher contributions from the NGL and Natural Gas Pipelines & Services businesses.

Enterprise Products beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 7.15%. This is depicted in the graph below:

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings of 61 cents per unit has seen two upward revisions and no downward movement in the past 30 days. The figure suggests a 1.7% year-over-year increase.

The Zacks Consensus Estimate for revenues is pegged at $13.9 billion for the quarter, indicating an increase of 6.7% from the year-ago reported figure.

Earnings Whispers

Our proven model predicts 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 odds of an earnings beat. That is the case here, as you will see below.

Earnings ESP: Earnings ESP for the partnership is +1.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Enterprise Products currently carries a Zacks Rank #2.

Factors to Consider

Enterprise Products has a stable business model and is not significantly exposed to the volatility in oil and gas prices. It generates 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 first-quarter gross operating margin from natural gas pipelines & services is pegged at $284 million, suggesting an increase from $220 million in first-quarter 2022. Our estimate for the metric is pegged at $229.3 million, also indicating a year-over-year improvement.

Other Stocks to Consider

Here are some other firms that you may want to consider, as these, too, have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

EOG Resources, Inc. (EOG - Free Report) currently has an Earnings ESP of +0.58% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

EOG Resources is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for its earnings is pegged at $2.42 per share.

TechnipFMC plc (FTI - Free Report) currently has an Earnings ESP of +16.26% and a Zacks Rank #3.

TechnipFMC is scheduled to release first-quarter earnings on Apr 27. The Zacks Consensus Estimate for its earnings is pegged at 3 cents per share, suggesting an increase from the prior-year reported figure.

Magellan Midstream Partners LP has an Earnings ESP of +0.14% and is currently a Zacks #3 Ranked player.

Magellan Midstream is scheduled to release first-quarter results on May 04. The Zacks Consensus Estimate for its earnings is pegged at $1.18 per share, suggesting an increase from the prior-year reported figure.

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


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