Enbridge Q4 Earnings on Deck: Should You Buy Now or Wait?

Core Viewpoint - Enbridge Inc (ENB) is expected to report its fourth-quarter 2024 results on February 14, with earnings estimates showing a potential improvement compared to the previous year, while revenue estimates indicate a significant decline [1][2]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter earnings is 52 cents per share, reflecting a 10.6% increase from the prior year's reported figure [2]. - Quarterly revenue is estimated at $4.8 billion, suggesting a 42.9% decrease from the year-ago actuals [2]. - ENB has a history of mixed earnings performance, beating estimates once, meeting once, and missing twice in the last four quarters, with an average surprise of 0.7% [3]. Earnings Prediction - The company has an Earnings ESP of +0.41%, with the Most Accurate Estimate at 53 cents per share, indicating a favorable outlook for an earnings beat [4]. Operational Overview - Enbridge operates an extensive crude oil and liquids transportation network of 18,085 miles, and a gas transportation pipeline network of 71,308 miles, making it a leading midstream energy player in North America [5]. - The company transports 20% of the total natural gas consumed in the U.S., which is expected to generate stable, fee-based revenues due to long-term contracts with shippers [6]. Stock Performance & Valuation - ENB's stock has increased by 41.6% over the past year, compared to a 48.6% rise in the industry composite [8]. - The current trailing 12-month EV/EBITDA ratio for ENB is 17.35, which is higher than the industry average of 14.70 and exceeds ratios of major competitors like Kinder Morgan Inc. (KMI) and Enterprise Products Partners LP (EPD) [10]. Investment Thesis - The company has a C$27 billion backlog of secured capital projects, which includes various midstream growth initiatives expected to enhance cash flows and support attractive dividend payments [13]. - However, ENB faces significant regulatory scrutiny and operates with a high level of debt, which is above the industry average, presenting potential financial risks [14].