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What's in Store for Plains All American's (PAA) Q3 Earnings?

Plains All American Pipeline, L.P. PAA is scheduled to release third-quarter 2020 results on Nov 2, after market close. In the last reported quarter, the firm delivered a negative earnings surprise of 10.7%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Amid the unprecedented economic crisis, Plains All American took steps to streamline and increase efficiencies across the business. These measures are expected to have lowered operating expenses and benefit third-quarter results.

With the easing of coronavirus-led restrictions, most E&P companies in the Permian Basin have been gradually increasing production volumes to match demand. This might positively impact Plains All American’s third-quarter results as the firm has a strong presence in the region and substantial fee-based earnings.

Plains All American Pipeline, L.P. Price and EPS Surprise

Plains All American Pipeline, L.P. Price and EPS Surprise

Plains All American Pipeline, L.P. price-eps-surprise | Plains All American Pipeline, L.P. Quote

Expectations

The Zacks Consensus Estimate for third-quarter earnings per unit is pegged at 32 cents, which indicates a decline of 38.5% from the year-ago reported figure. The same for sales stands at $5.33 billion, suggesting a 32.4% decrease from the year-earlier quarter’s reported number.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Plains All American 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 see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Plains All American has an Earnings ESP of -1.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, it carries a Zacks Rank #3.

Stocks to Consider

Investors can consider some players worth considering from the same sector that have the right combination of elements to beat on earnings this season.

Antero Midstream Corporation AM is set to release third-quarter earnings on Oct 28. It has an Earnings ESP of +9.89% and a Zacks Rank #2.

Energy Transfer LP ET is expected to release third-quarter 2020 numbers on Nov 4. It has an Earnings ESP of +10.70% and a Zacks Rank #3.

NuStar Energy L.P. NS is slated to release third-quarter 2020 numbers on Nov 5. It has an Earnings ESP of +2.94% and a Zacks Rank 2.

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Plains All American Pipeline, L.P. (PAA): Free Stock Analysis Report
 
NuStar Energy L.P. (NS): Free Stock Analysis Report
 
Antero Midstream Corporation (AM): Free Stock Analysis Report
 
Energy Transfer LP (ET): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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