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Will Cheniere Energy Partners (CQH) Beat on Q3 Earnings?

Cheniere Energy Partners LP Holdings LLCCQH is expected to report third-quarter 2015 results on Oct 29.

Cheniere EnergyPartners LP Holdings' average surprise during the last four quarters was 0.00%. Let's see how things are shaping up for this announcement.

Factors to Consider this Quarter

Cheniere Energy Partners LP Holdings, by virtue of its 55.9% ownership in Cheniere Energy Partners LP CQP , primarily operates the Sabine Pass natural gas regasification and liquefaction facilities. Cheniere Energy Partners LP Holdings also operates Creole Trail Pipeline - located in Louisiana. This solid asset base might help the company to earn sufficiently for its shareholders.

Moreover, the fortunes of this midstream player's business are positively correlated with natural gas production. The commodity has already been oversupplied in the U.S. owing to hydraulic fracturing (or "fracking") and sophisticated horizontal drilling techniques.

Hence, we can say that the business environment was favorable for the player in the third quarter too as plentiful output of the commodity usually increases the need for regasification, liquefaction and transportation activities. Yet, we have to wait for the final earnings release to find out whether this increase in output translates into a positive surprise.

Earnings Whispers

Our proven model does not conclusively show that Cheniere Energy Partners LP Holdings is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.

Zacks ESP: The Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents.

Zacks Rank: Cheniere Energy Partners LP Holdings carries a Zacks Rank #4 (Sell). As it is the company does not have a positive ESP, on top of that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the player is seeing negative estimate revisions.

Stocks to Consider

Here are some players for investors to consider, that, according to our model have the right combination of elements to post an earnings beat this quarter:

Exterran Partners LP EXLP has Earnings ESP of +19.23% and a Zacks Rank #2 (Buy). The partnership is expected to release earnings results on Nov 3.

Natural Gas Services Group Inc. NGS has Earnings ESP of +21.05% and a Zacks Rank #1 (Strong Buy). The company is slated to release earnings results on Nov 5.

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CHENIERE ENERGY (CQP): Free Stock Analysis Report

EXTERRAN PTNRS (EXLP): Free Stock Analysis Report

NATURAL GAS SVC (NGS): Free Stock Analysis Report

CHENIERE EP LP (CQH): 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.


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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