Energy Transfer LP (NYSE:ET) is expected to release first-quarter 2019 results on May 8, after market close. This natural gas pipeline operator delivered average negative earnings surprise of 25.98% in the last four quarters.
Factors at Play
Energy Transfer has assets in major producing areas in the United States, which will likely aid earnings. The completion of multi-year organic projects will contribute to earnings growth in the first quarter. Energy Transfer’s diverse earnings sources, which are predominantly fee-based business, provide earnings visibility.
The Zacks Consensus Estimate for total revenues in pegged at $13,973 million for the first quarter, indicating growth of 17.6% from the year-ago reported figure.
What the Zacks Model Says
Our proven model shows that Energy Transfer is unlikely to beat estimates in the upcoming quarterly results. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate), and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. It does not have the right mix as shown below. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -1.41%.
Zacks Rank: Energy Transfer currently carries a Zacks Rank #3. The favorable rank, when combined with a negative ESP, makes earnings surprise unlikely this season.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Investors can consider the following players from the same industry, as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
NuStar Energy L.P. (NYSE:NS) is expected to release first-quarter 2019 numbers on Feb 20, before the market opens. It has an Earnings ESP of +25.39% and carries a Zacks Rank #3.
Summit Midstream Partners, LP (NYSE:SMLP) is expected to release first-quarter 2019 results on May 9, after market close. It has an Earnings ESP of +21.16% and holds a Zacks Rank #3.
TC PipeLines, LP (NYSE:TCP) is expected to release first-quarter 2019 numbers on May 8. It has an Earnings ESP of +1.08% and carries a Zacks Rank #3.
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Summit Midstream Partners, LP (SMLP): Free Stock Analysis Report
TC PipeLines, LP (TCP): Free Stock Analysis Report
NuStar Energy L.P. (NS): Free Stock Analysis Report
Energy Transfer LP (ET): Free Stock Analysis Report
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Zacks Investment Research