El Paso Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component El Paso Corp (NYSE:EP) will unveil its latest earnings on Wednesday, November 2, 2011. El Paso is an energy company that provides natural gas and related energy products.

El Paso Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 26 cents per share, a rise of 18.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 25 cents during the last month. For the year, analysts are projecting profit of $1.10 per share, a rise of 12.2% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by one cent, reporting net income of 25 cents per share against a mean estimate of profit of 24 cents. In the first quarter, the company exceeded forecasts by 2 cents with net income of 30 cents versus a mean estimate of profit of 28 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.25 billion in revenue this quarter, a rise of 3.3% from the year ago quarter. Analysts are forecasting total revenue of $4.91 billion for the year, a rise of 6.3% from last year’s revenue of $4.62 billion.

Analyst Ratings: Analysts are bullish on this stock with six analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the second quarter, profit rose 66.9% to $262 million (34 cents a share) from $157 million (21 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 21.4% to $1.24 billion from $1.02 billion.

Key Stats:

A year-over-year revenue increase in the second quarter snapped a streak of two consecutive quarters of revenue declines. Revenue fell 29.4% in the first quarter and 17.5% in the fourth quarter of the last fiscal year.

The increase in profit in the second quarter broke a streak of two consecutive quarters of year-over-year profit decreases. The figure dropped 84% in the first quarter and 74.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: Kinder Morgan Inc (NYSE:KMI), El Paso Pipeline Partners, L.P. (NYSE:EPB), Kinder Morgan Energy Partners LP (NYSE:KMP), Southern Union Company (NYSE:SUG), Enterprise Products Partners L.P. (NYSE:EPD), Enterprise GP Hldgs. L.P. (EPE), Spectra Energy Partners, LP (NYSE:SEP), Blue Dolphin Energy Co. (NASDAQ:BDCO), Copano Energy, L.L.C. (NASDAQ:CPNO), and Atlas Pipeline Partners, L.P. (NYSE:APL).

Stock Price Performance: During September 29, 2011 to October 27, 2011, the stock price had risen $7.89 (44.5%) from $17.72 to $25.61. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 5, 2011 when shares rose for seven-straight days, rising 5.2% (+$1.02) over that span. It saw one of its worst periods between September 15, 2011 and September 23, 2011 when shares fell for seven-straight days, falling 12.6% (-$2.48) over that span. Shares are up $11.87 (+86.4%) year to date.

(Source: Xignite Financials)

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