Examining the Future: EnLink Midstream's Earnings Outlook

EnLink Midstream ENLC will release its quarterly earnings report on Wednesday, 2024-11-06. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate EnLink Midstream to report an earnings per share (EPS) of $0.15.

EnLink Midstream bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

In the previous earnings release, the company missed EPS by $0.07, leading to a 6.82% drop in the share price the following trading session.

Here's a look at EnLink Midstream's past performance and the resulting price change:

Stock Performance

Shares of EnLink Midstream were trading at $14.94 as of November 04. Over the last 52-week period, shares are up 24.33%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about EnLink Midstream

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on EnLink Midstream.

EnLink Midstream has received a total of 8 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $15.5, the consensus suggests a potential 3.75% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Antero Midstream, DT Midstream and Frontline, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Underperform trajectory for Antero Midstream, with an average 1-year price target of $16.0, suggesting a potential 7.1% upside.
• Analysts currently favor an Neutral trajectory for DT Midstream, with an average 1-year price target of $86.38, suggesting a potential 478.18% upside.
• The consensus outlook from analysts is an Buy trajectory for Frontline, with an average 1-year price target of $30.0, indicating a potential 100.8% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Antero Midstream, DT Midstream and Frontline, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

EnLink Midstream ranks in the middle for consensus rating among its peers. It is at the bottom for revenue growth. In terms of gross profit, it is at the top among its peers. For return on equity, it is at the bottom compared to its peers.

Delving into EnLink Midstream's Background

EnLink Midstream LLC is an integrated midstream company. The company's operating segment includes Permian; North Texas; Oklahoma; Louisiana and Corporate. The company generates maximum revenue from the Louisiana segment. The Louisiana segment includes natural gas pipelines, natural gas processing plants, storage facilities, fractionation facilities, and NGL assets.

Unraveling the Financial Story of EnLink Midstream

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: EnLink Midstream displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 2.18%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Net Margin: EnLink Midstream's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 2.46%, the company may face hurdles in effective cost management.

Return on Equity (ROE): EnLink Midstream's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.2%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): EnLink Midstream's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.47%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 5.11, caution is advised due to increased financial risk.

To track all earnings releases for EnLink Midstream visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.