Plains All American Pipeline, L.P. PAA is set to report first-quarter 2026 results on May 8, before market open. The firm reported a negative earnings surprise of 14.89% in the last quarter.
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.
Q1 Expectations for PAA
The Zacks Consensus Estimate for earnings is pegged at 41 cents per share, implying 5.13% year-over-year growth.
The consensus estimate for revenues is pinned at $12.54 billion, indicating an increase of 4.39% from the year-ago reported figure.
Factors Likely to Have Impacted PAA’s Q1 Earnings
Plains All American Pipeline’s first-quarter earnings are expected to have benefited from synergies stemming from its Cactus III acquisition, supporting its pure-play crude midstream transition strategy. This is likely to improve service quality and drive EBITDA growth, supporting the upcoming earnings results.
PAA's continuous focus on operational efficiency and cost optimization is likely to have acted as a tailwind to its performance in the to-be-reported quarter. This is expected to have lowered expenses, improved returns and boosted first-quarter earnings per share.
The company's disciplined cost allocation plans, along with its widespread network of pipelines and storage assets across major North American oil-producing regions, are expected to have supported revenue growth and strengthened first-quarter earnings performance.
However, the loan taken to fund the Cactus III acquisition is likely to have increased interest expenses, which may have offset some positives in first-quarter earnings.
What Our Quantitative Model Predicts for PAA
Our proven model does not predict an earnings beat for Plains All American Pipeline this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
PAA’s Earnings ESP: The firm has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PAA’s Zacks Rank: Currently, Plains All American Pipeline carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Plains All American Pipeline, L.P. Price and EPS Surprise
Plains All American Pipeline, L.P. price-eps-surprise | Plains All American Pipeline, L.P. Quote
Stocks to Consider
Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
Shell plc SHEL is scheduled to report first-quarter results on May 7. It has an Earnings ESP of +3.56% and a Zacks Rank #1 at present.
The company has a dividend yield of 3.32%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.78, which implies a year-over-year fall of 3.26%.
Pembina Pipeline Corporation PBA is set to report first-quarter results on May 7. It has an Earnings ESP of +0.65% and a Zacks Rank #3 at present.
The company has a dividend yield of 4.50%. The Zacks Consensus Estimate for first-quarter EPS is pinned at 52 cents, which implies a year-over-year fall of 7.14%.
South Bow Corporation SOBO is likely to come up with earnings beat when it reports first-quarter results on May 7. It has an Earnings ESP of +9.29% and a Zacks Rank #3 at present.
The company has a dividend yield of 5.66%. The Zacks Consensus Estimate for first-quarter EPS is pinned at 46 cents, which implies a year-over-year fall of 2.13%.
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Plains All American Pipeline, L.P. (PAA): Free Stock Analysis Report
Pembina Pipeline Corp. (PBA): Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report
South Bow Corporation (SOBO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).