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Is a Beat in Store for Plains All American (PAA) Q2 Earnings?

Plains All American Pipeline, L.P. PAA is scheduled to release second-quarter 2020 results on Aug 4, after market close. In the last reported quarter, the firm delivered an earnings surprise of 14.58%.

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

Factors to Consider

Amid the unprecedented economic crisis caused by the novel coronavirus outbreak and a subsequent drop in demand, Plains All American took steps to reduce costs and trim cash distribution per unit, which are expected to have benefited second-quarter results.

However, during this uncertainty, most E&P companies voluntarily lowered production volumes to compensate for declining demand that might have adversely impacted Plains All American as majority of its earnings are derived from fee-based contracts.

Q2 Expectations

The Zacks Consensus Estimate for second-quarter earnings per unit is pegged at 27 cents, which indicates a decline of 59.7% from the year-ago quarter’s reported figure. The same for the period’s sales stands at $7.03 billion, suggesting a 14.83% decrease from the year-earlier quarter’s reported number.

What Does the Zacks Model Say?

Our proven model predicts 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Plains All American has an Earnings ESP of +8.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Plains All American carries a Zacks Rank #3.

Other Stocks to Consider

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

Crescent Point Energy Corporation CPG is expected to release second-quarter 2020 numbers on Jul 30. It has an Earnings ESP of +12.50% and a Zacks Rank #2, currently.

PBF Logistics LP PBFX is slated to release second-quarter 2020 numbers on Jul 31. It has an Earnings ESP of +15.56% and a Zacks Rank 2 at present.

Canadian Natural Resources Limited CNQ is set to release second-quarter earnings on Aug 6. It has an Earnings ESP of +6.48% and a Zacks Rank #3, presently.

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Plains All American Pipeline, L.P. (PAA): Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report
Crescent Point Energy Corporation (CPG): Free Stock Analysis Report
PBF Logistics LP (PBFX): Free Stock Analysis Report
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