Market Overview

Earnings Outlook for Magellan Midstream

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Magellan Midstream (NYSE: MMP) releases its next round of earnings this Friday, October 30. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Magellan Midstream EPS will likely be near $0.84 while revenue will be around $574.94 million, according to analysts. In the same quarter last year, Magellan Midstream reported EPS of $1.19 on revenue of $656.60 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, EPS would have fallen 29.41%. Revenue would be down 12.44% from the year-ago period. Magellan Midstream's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.73 1.03 1.18 1.07
EPS Actual 0.65 1.28 1.31 1.19
Revenue Estimate 558.03 M 683.97 M 837.80 M 672.81 M
Revenue Actual 460.41 M 782.81 M 740.68 M 656.60 M

Stock Performance

Shares of Magellan Midstream were trading at $34.78 as of October 28. Over the last 52-week period, shares are down 44.78%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Magellan Midstream is scheduled to hold the call at 13:00:00 ET and can be accessed here.

 

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Posted-In: Earnings