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Is a Beat in the Offing for Enbridge (ENB) in Q4 Earnings?

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Enbridge Inc. (ENB - Free Report) is set to report fourth-quarter 2023 results on Feb 9, before the opening bell.

Let’s delve into the factors that are anticipated to have influenced this pipeline operator’s performance in the to-be-reported quarter. However, it is worth taking a look at ENB’s previous quarter’s performance first.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, the midstream energy player’s adjusted earnings per share of 46 cents beat the Zacks Consensus Estimate of 43 cents, thanks to higher contributions from the Liquids Pipelines segment. This was partially offset by lower contributions from the Gas Transmission and Midstream, and Gas Distribution and Storage segments.

Enbridge’s earnings beat estimates in two of the trailing four quarters, met once and missed on one occasion, delivering an average negative earnings surprise of 2.3%. 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 fourth-quarter earnings witnessed one upward movement and two downward revisions in the past 30 days. Earnings estimates are pegged at 50 cents per share, implying a year-over-year increase of 8.7%.

The Zacks Consensus Estimate for ENB’s fourth-quarter revenues of $9.6 billion indicates a 2.7% decline from the year-ago reported figure.

Earnings Whisper

Our proven model conclusively predicts 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 the case here.  

Earnings ESP: Enbridge has an Earnings ESP of +0.14%. This is because the Most Accurate Estimate is pegged at earnings of 51 cents per share, while the Zacks Consensus Estimate is pegged at earnings of 50 cents. 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.

Factors to Note

Enbridge’s business model has been stable due to the majority of its midstream assets being supported by long-term contracts. This strategic approach ensures a steady stream of fee-based revenues, insulating the company from the fluctuations typically associated with commodity prices.

As a result, despite the inherent volatility in the energy market, Enbridge’s financial outcomes have been more predictable and stable, which is expected to have resulted in consistent fee-based revenue generation in the fourth quarter.

Stocks to Consider

Here are some other firms worth considering, as these also have the right combination of elements to beat on earnings in the upcoming quarterly reports:

USA Compression Partners, LP (USAC - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on Feb 13. The Zacks Consensus Estimate for USA Compression Partners’s 2024 earnings per share indicates 100% year-over-year growth.

Suncor Energy, Inc. (SU - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3.

The firm is scheduled to release earnings on Feb 21. The Zacks Consensus Estimate for Suncor’s earnings is pegged at 79 cents per share.

PBF Energy Inc. (PBF - Free Report) has an Earnings ESP of +22.22% and a Zacks Rank #3.

The firm is scheduled to release earnings on Feb 15. The Zacks Consensus Estimate for PBF Energy’s earnings is pegged at 8 cents per share.

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


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