Enbridge (ENB), North America’s largest energy infrastructure company, reported a higher adjusted profit in the third quarter of 2021 than a year earlier, thanks to a crude price rebound.
Adjusted Profit Beats Estimates
The pipeline company reported a profit of C$682 million (C$0.34 per share) in the third quarter, a decrease of 15% from C$990 million (C$0.49 per share) a year ago.
On an adjusted basis, Enbridge earned C$1.2 billion (C$0.59 per share) in Q3 2021, up from an adjusted profit of C$961 million (C$0.48 per share) in Q3 2020. This beats average analysts’ estimate of C$0.57.
Reaffirmed Full-Year Guidance
Enbridge president and CEO Al Monaco said, “In the third quarter, the business delivered strong operational performance and financial results across our four franchises. Our low-risk business model continues to generate predictable results and execution on our strategic priorities is driving solid cash flow growth and per share results.”
Enbridge reaffirmed its full-year 2021 EBITDA and DCF per share guidance. It expects EBITDA and DCF to be within the range of C$13.9 billion to C$14.3 billion and C$4.70 to C$5.00 per share, respectively. (See Analysts’ Top Stocks on TipRanks)
On October 25, Credit Suisse analyst Andrew Kuske downgraded ENB to Hold from Buy with a C$56 price target. This implies 4.2% upside potential.
Overall, ENB scores a Strong Buy consensus rating among analysts based on nine Buys and three Holds. The average Enbridge price target of C$56.17 implies 4.6% upside potential to current levels.
TipRanks’ Smart Score
Enbridge scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform the overall market.