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-eps-surprise | Plains All American Pipeline, L.P. Quote
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.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.