Enbridge 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).

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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