Why EnLink Midstream (ENLC), is Poised to Beat Earnings Expectations Again
EnLink Midstream (ENLC) is a stock you can consider if you’re looking for a stock with a strong track record of beating earnings estimates, and that will continue the trend in its next quarter report. This company is part of the Zacks Oil and Gas Refining and Marketing sector and has potential to beat earnings estimates again.
This natural gas company is known for exceeding earnings estimates. Take a look at the past two reports. For the past two quarters, the company has a surprise rate of 123.48%.
EnLink Midstream posted earnings of $0.18 per diluted share in the last quarter, compared with the Zacks Consensus Estimate $0.11 per diluted share. This was a surprise by 63.64%. The previous quarter was expected to see earnings of $0.06 per shares. However, earnings actually came in at $0.17 per share which surprised 183.33%.
Price and EPS Surprise
EnLink Midstream estimates are moving higher based on this earnings history. Indeed, EnLink Midstream’s Zacks Earnings ESP is positive. This is a good sign that the company has made an earnings beat, especially when it is combined with its Zacks Rank.
Our research has shown that stocks with a positive Earnings ESP combined with a Zacks Rank 3 (Hold) or higher produce a positive surprise almost 70% of the times. This means that if 10 stocks have this combination, there could be seven stocks that surpass the consensus estimate.
The Zacks Earnings ESP compares most accurate estimates to the Zacks Consensus Estimate. For the quarter, the Most Accurate Estimate refers to a Zacks Consensus version that is related to changes. This is because analysts who revise their estimates before earnings releases have the most current information. It could be that this information will prove to be more accurate than what others contributed to the consensus.
EnLink Midstream currently boasts an EarningsESP of +2.70%. This suggests that analysts are now bullish about the company’s prospects. The stock’s Zacks Rank #3, which is a Hold, has a positive Earnings ESP. This suggests that there may be another win. The company’s next earnings report will be published on February 14, 2023.
A negative Earnings ESP metric will reduce its predictive power. However, a negative Earnings ESP metric does not mean an earnings miss.
Although many companies surpass the consensus EPS estimate for their earnings, it is not the only reason that shares increase. Even if the consensus estimate is not met, stocks can remain stable.
To increase your chances of success, you should check a company’s Earnings ESP before each quarterly release. Our Earnings ESP Filter will help you find the best stocks to purchase or sell before they report.
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EnLink Midstream, LLC (ENLC) : Free Stock Analysis Report