Enbridge Q1 Earnings on Deck: Should You Remain Invested in the Stock?

Core Viewpoint - Enbridge Inc (ENB) is expected to report first-quarter 2025 results on May 9, with earnings estimated at 68 cents per share and revenues projected at $9.5 billion, reflecting a 16.4% increase from the previous year [1][5]. Earnings Performance - ENB has beaten consensus earnings estimates in two of the last four quarters, met once, and missed once, with an average surprise of 2.6% [2]. - The current Earnings ESP for ENB is -1.38%, indicating a lower likelihood of an earnings beat this quarter [3]. Operational Overview - Enbridge operates the longest and most complex crude oil and liquids transportation network globally, spanning 18,085 miles, along with a gas transportation pipeline network of 71,308 miles [5]. - The company transports 20% of the total natural gas consumed in the U.S., generating stable, fee-based revenues from long-term contracts, which mitigates commodity price volatility [6]. Stock Performance and Valuation - ENB's stock has increased by 33.9% over the past year, slightly underperforming the industry's composite stocks, which improved by 35.6% [7]. - The current trailing 12-month EV/EBITDA ratio for ENB is 15.75, which is higher than the industry average of 14.08 and exceeds ratios of major competitors like Kinder Morgan Inc. (14.10) and Enterprise Products Partners LP (9.85) [9]. Growth Prospects - Enbridge has a C$29 billion backlog of secured capital projects, including liquids pipelines, gas transmission, and renewables, with a maximum in-service date of 2029, indicating potential for future cash flows and shareholder dividends [14]. Industry Context - Recent earnings reports from competitors Kinder Morgan and Enterprise Products Partners showed mixed results, with both missing earnings estimates but exceeding revenue expectations [16][18].