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The transfer of energy (New York Stock Exchange: ET) rose 2.79% Tuesday ahead of second-quarter earnings results due out Aug. 7, after the closing bell.
On average, Wall Street expects the average company to post quarterly earnings per share of $0.28 on revenue of $21.5 billion (+17.4% year-over-year).
“The second quarter financial results are expected to show growth in revenue and earnings, with a focus on operating cash flow and free cash flow,” said Daniel Jones, head of the investment group.
Jones added that recent acquisitions and joint ventures will impact future guidance and should be focused on when presenting results.
During the quarter, Energy Transfer announced its acquisition of WTG Midstream Holdings for approximately $3.25 billion, including $2.45 billion in cash and approximately $50.8 million in new common units issued.
The partnership expects WTG to add approximately $0.04/unit of distributable cash flow in 2025, growing to approximately $0.07/unit in 2027, ET noted.
In its previous quarterly earnings, Energy Transfer missed consensus on net income, but its revenue surged far beyond what analysts had in mind. Distributable cash flow attributable to partners was $2.36 billion, up from $2.01 billion a year ago.
Over the past year, ET has beaten earnings per share estimates 100% of the time, and beat revenue estimates 75% of the time.
Since the beginning of the year, Energy Transfer shares have risen about 15%. Seeking Alpha’s Quant rates the stock a Buy, while sell-side analysts recommend the company as a Strong Buy.