Should You Buy, Sell or Hold Energy Transfer Stock Before Q3 Earnings?
In This Article:
Energy Transfer LP ET is expected to report an improvement in its top and bottom lines when it reports third-quarter 2024 results on Nov. 6, after market close.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for ET’s third-quarter revenues is pegged at $24.23 billion, indicating a 16.81% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at 32 cents per unit. The Zacks Consensus Estimate for ET’s third-quarter earnings has remained unchanged in the past 30 days. The estimate suggests year-over-year growth of 3.3%.
Image Source: Zacks Investment Research
Earnings Surprise History
Energy Transfer’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while lagging in the other two, the average surprise being 5.15%.
What the Zacks Model Unveils
Our model predicts a likely earnings beat for Energy Transfer 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. That is the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Energy Transfer LP Price and EPS Surprise
Energy Transfer LP price-eps-surprise | Energy Transfer LP Quote
Earnings ESP: Energy Transfer has an Earnings ESP of +7.29%.
Zacks Rank: Energy Transfer currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped ET’s Q3 Earnings
Energy Transfer’s quarterly earnings are likely to have benefited from its organic expansion projects and strategic acquisitions of assets. The WTG acquisition, which closed earlier this year, expanded ET’s natural gas pipeline and processing network in the Permian Basin and is likely to have boosted third-quarter earnings.
Energy Transfer’s pipelines are spread across every major production basin in the United States, ensuring diverse earnings sources likely to have contributed to its third-quarter earnings. Fee-based contracts are expected to have contributed to third-quarter earnings like previous quarters.
The quarter’s earnings are also expected to have gained from the strong export volumes of liquefied petroleum gas to different countries across the globe. The firm is expanding its natural gas liquids (NGL) export facilities, and the capacity to export nearly 1.1 million barrels per day of NGL is likely to have boosted its performance. Energy Transfer’s more than 130,000 miles of pipelines and related infrastructure spread across 44 states in the United States, which creates demand for its services and contributes to strong performance.