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Enbridge (ENB) to Report Q1 Earnings: What's in the Offing?

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Enbridge Inc. (ENB - Free Report) is set to report first-quarter 2023 results on May 5 before the opening bell.

In the last reported quarter, the leading North America energy infrastructure company’s adjusted earnings per share of 46 cents missed the Zacks Consensus Estimate of 56 cents due to lower contributions from the Renewable Power Generation 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 5.7%, 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 Enbridge’s first-quarter earnings per share of 62 cents has witnessed one upward revision and two downward movements in the past 30 days. The figure suggests a 6.1% decline from the year-ago reported number.

Factors to Consider

In the March-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.

Although crude prices retreated from their peaks in the year-ago quarter, the same were high in the first quarter. With the favorable crude price scenario, exploration and production activities are expected to have been stable in the first quarter. Higher production is likely to have driven the demand for Enbridge’s oil pipeline.

However, the increase in Enbridge’s expenses is anticipated to have dented the company’s to-be-reported bottom line. The upward cost trajectory is likely to have continued in the first quarter due to the prevailing inflationary environment.

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 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both are pegged at earnings of 62 cents per share. 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 #3.

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:

Magellan Midstream Partners LP  has an Earnings ESP of +0.70% and is currently a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magellan Midstream is scheduled to release first-quarter results on May 4. The Zacks Consensus Estimate for its earnings is pegged at $1.21 per share, suggesting an increase from the prior-year reported figure.

ConocoPhillips (COP - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #3 at present.

ConocoPhillips is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.02 per share, implying a decline from the prior-year reported figure.

EOG Resources Inc. (EOG - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3 at present.

EOG Resources is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.42 per share, indicating a decline from the prior-year reported figure.

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


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