) is a pipeline operator that has been consistently paying
dividends to shareholders for the last 60 years. Furthermore,
following the second quarter earnings release, shares of this Zacks
#2 Rank (Buy) are on the upside.
On August 2, Enbridge Inc. reported second quarter earnings of 36
cents per share, which was flat with last year and 2 cents short of
the Zacks Consensus Estimate.
Revenues, however, increased 11.4% to $5.7 billion, which
substantially beat the Zacks Consensus Estimate of $4.85 billion by
Enbridge Inc. expects its earnings per share for 2012 to remain in
the range of C$1.58 to C$1.74.
Earnings Estimates Move Up
The past 30 days have seen two of eight estimates for 2012 move
upward, while one estimate was pulled back. The Zacks Consensus
Estimate has increased by a penny to $1.64 per share, reflecting an
estimated year-over-year growth of 25.0%.
For 2013, three of eight estimates were revised upward in the last
30 days, pushing the Zacks Consensus Estimate higher by a penny to
$1.85 per share. This reflects an estimated year-over-year growth
Enbridge Inc. has been consistently paying dividends to its
shareholders for the last 60 years, and has also increased its
dividend every year since 1996. The current annualized rate of
$1.13 per share reflects a dividend yield of 2.9%.
Shares of Enbridge Inc. are trading roughly 24.4 times the full
year 2012 estimate with the PEG ratio at 2.44 times. The
price-to-book is at 3.00x, a 50.0% premium to the peer group
average of 2.00x. The price-to-sales is at 1.57x, a 46.2% discount
to the peer group average of 2.92x.
The company has a trailing 12-month ROE of 12.5% compared with the
peer group average of 11.4%.
Given a double-digit earnings growth prospect in the current year,
the valuation presents a window of opportunity for investors
seeking income and growth.
Based in Calgary, Canada, Enbridge Inc. was founded in 1949. This
pipeline operator is engaged in the distribution and transportation
of crude oil and natural gas in the United States and Canada. The
company has a market capital of $31.85 billion and 7,000 employees.
Enbridge competes with TransCanada Corp. (
ENBRIDGE INC (ENB): Free Stock Analysis Report
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