NEW YORK (TheStreet) -- Enterprise Products (EPD) - Get Report shares are up by 1.64% to $29.14 in afternoon trading on Wednesday, ahead of the release of the midstream energy services provider's second quarter earnings results, due out tomorrow before the opening bell.
The Houston, TX-based company is expected to report earnings of 33 cents per share on revenue of $9.7 billion for the latest quarter.
Expected earnings for the period are only slightly below the 34 cents per share the company reported for the year ago period.
However, expected revenue for the quarter is down significantly from the $12.5 billion the company generated a year ago.
Enterprise Products reported revenue of $7.42 billion in the 2015 first quarter, a 42% decline from the year ago total.
Separately, TheStreet Ratings team rates ENTERPRISE PRODS PRTNRS -LP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENTERPRISE PRODS PRTNRS -LP (EPD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EPD, with its decline in revenue, slightly underperformed the industry average of 38.8%. Since the same quarter one year prior, revenues fell by 42.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 20.4% when compared to the same quarter one year ago, dropping from $798.80 million to $636.10 million.
- ENTERPRISE PRODS PRTNRS -LP's earnings per share declined by 24.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ENTERPRISE PRODS PRTNRS -LP increased its bottom line by earning $1.48 versus $1.41 in the prior year. For the next year, the market is expecting a contraction of 6.4% in earnings ($1.38 versus $1.48).
- The gross profit margin for ENTERPRISE PRODS PRTNRS -LP is rather low; currently it is at 16.08%. Regardless of EPD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, EPD's net profit margin of 8.51% compares favorably to the industry average.
- You can view the full analysis from the report here: EPD Ratings Report