Enbridge Inc. (NYSE: ENB) has confirmed that it will release its quarterly earnings report on Friday, February 11, 2022.
What to look for
The company is starting off on clean energy initiatives while still generating considerable cash flow from its carbon-based assets. Growth in clean energy is expected to be massive due to the global push to reduce carbon emissions. The company generates around 585 of its EBITDA from oil, and these fee-based assets are expected to offer reliable cash flows in quarters to come. In 2020 clean energy segment accounted for 3% of EBITDA, and by the end of 2022, it is expected to account for 4%.
Earnings: Stockearning’s Estimated EPS for the current quarter under review is expected to be $0.62 per share representing YoY growth of 44.19%. In the same quarter a year ago, the company had earnings per share of $0.43. Enbridge produced an EPS surprise of 2.17% in the third quarter by posting EPS of $0.47. Historical EPS Performance shows that in the past 12 quarters, the company has topped EPS estimates 17 times (48%), met four times (11%), and missed 12 times (34%).
Revenue: The company is expected to report revenue growth by reporting its Q4 2021 results. In the third quarter, the company saw a 33.2 YoY increase in revenue to $9.107 billion. The liquids pipelines segment reported EBITDA of C$1.898 billion, while the gas transmission and midstream segment had adjusted EBITDA of C$986.
Stock movement: ENB shares have gained 0.8% since the company released its third-quarter earnings. Interestingly, ENB shares have been UP 14 times out of the past 28 quarters. So, the historical price reaction suggests a 50% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 1%, while the predicted move on the seventh day is 2%.
What analysts are saying
National Bank analyst Patrick Kenny raised his price target on ENB from C$54 to C$56 and maintained a Buy rating on the stock. CIBC analyst Robert Catellier raised his price target in ENB from C$55 to C$57 and maintained a Buy rating on the shares.
Morgan Stanley analyst Robert Kad downgraded ENB shares from Buy to Hold with a price target of $60. The analyst noted that he is keeping an Attractive view and anticipates the midstream segment to sustain performance this year but equally noted that the year is likely to be volatile. Kad contends that in the case of ENB, the “catalyst path has passed." RBC Capital analyst Robert Kwan slashed his price target on ENB from C$61 to C$60 and maintained a Buy rating in the stock.
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