Delek Logistics Partners LP DKL is set to report third-quarter 2024 results on Nov. 6, before the opening bell.

In the last reported quarter, the midstream energy master limited partnership’s adjusted earnings of 87 cents per share beat the Zacks Consensus Estimate of 81 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The midstream player beat on earnings in two of the trailing four quarters and met the same twice, delivering an average surprise of 2.49%. This is depicted in the graph below:

Delek Logistics Partners, L.P. Price, Consensus and EPS Surprise

Delek Logistics Partners, L.P. price-consensus-eps-surprise-chart | Delek Logistics Partners, L.P. Quote

DKL’s Estimate Trend

The Zacks Consensus Estimate for third-quarter earnings per share of 82 cents has witnessed no earnings estimate revisions in the past seven days. The consensus estimate implies an improvement of 2.5% from the year-ago reported number.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $270.98 million indicates a 1.75% decrease from the year-ago reported figure.

Factors to Consider for DKL

As a midstream energy provider, though significantly smaller in market capitalization than Enbridge Inc. ENB and Kinder Morgan Inc. KMI, the partnership is likely to have reported strong earnings in the September quarter. This stability comes from long-term asset utilization by shippers, which helps shield it from oil and gas price volatility. Like DKL, both Enbridge and Kinder Morgan maintain expansive networks of oil and gas transportation assets.

However, despite efforts to diversify, DKL still generates a significant portion of its revenues from Delek US, which is likely to have exposed it to risks associated with the latter’s business performance.

Earnings Whispers

Our proven model doesn’t predict an earnings beat for DKL 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 not the case here, as you will see below.

Earnings ESP: DKL has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The partnership currently carries a Zacks Rank #4 (Sell).

Stock to Consider

Here is one stock that you may want to consider, as it has the right combination of elements to post an earnings beat this reporting cycle.

Sunoco LP SUN presently has an Earnings ESP of +13.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.