Equitrans Midstream Corporation (NYSE:ETRN) is scheduled to report Q3 earnings results on November 3, 2020.
The company is expected to report earnings of $0.33/share on revenue of $367 million. The consensus earnings per share (EPS) of $0.33/share is based on a poll of 6 analysts and represents a decline in eps of −65.0% over the same quarter last year, when the company reported earnings of $0.94/share.
The revenue forecast of $367 million based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −10.2%. Last year the company reported $408.4 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 7 tracked quarters, and missed expectations 1 quarter.
What are your expectations from Equitrans Midstream Corporation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 5.6%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 4, 2020||$9.75||$10.30||5.6%||Increase|
|May 14, 2020||$6.92||$7.72||11.6%||Increase|
|February 27, 2020||$8.68||$7.06||−18.7%||Decline|
|November 5, 2019||$14.50||$12.88||−11.2%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.19, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.19 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
Equitrans Midstream Corporation is currently trading at $7.60/share, down −2.9% for the day. The company is trading at approximately 52.2% of its 52-week high of $14.65/share. The company’s stock price is down −26.2% since the last earnings report and down −6.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 34.80 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −13.79 and a forward P/E multiple of 6.89.
Equitrans Midstream Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.06. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$7.60|
|P/E Ratio (Fwd)||6.9x|
|Total Debt / Total Capital||61.5%|
|Levered Free Cash Flow||$393.1 million|
|EV / EBITDA||6.6x|
Equitrans Midstream Corporation is a mid-cap stock with a market capitalization of $3.386 billion and a total enterprise value of $11.542 billion. The company operates in the Energy sector and the Oil, Gas & Consumable Fuels industry.
Equitrans Midstream Corporation owns, operates, acquires, and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin. It operates through three segments: Gathering, Transmission, and Water. The Gathering System segment include 990 miles of high-pressure gathering lines with compression of approximately 445,000 horsepower and multiple interconnect points; and approximately 920 miles of Federal Energy Regulatory Commission (FERC) low-pressure gathering lines. Its Transmission and Storage System segment comprises 950 miles of FERC regulated interstate pipeline that connects to seven interstate pipelines and local distribution companies. The Water System segment include two independent systems comprised approximately 180 miles of pipeline that deliver fresh water from the Monongahela River, the Ohio River, local reservoirs, and various regional waterways. Equitrans Midstream Corporation was founded in 2018 and is headquartered in Canonsburg, Pennsylvania.