Pembina Pipeline Corporation (NYSE:PBA) (TSE:PPL) has been under scrutiny by investors and analysts alike, especially after its first-quarter earnings report was released on Thursday, February 23rd. The company’s Q1 performance was a mixed bag with every positive being overshadowed by a negative.
Starting with the positives, Pembina Pipeline opened at $32.41 on Tuesday, May 10, 2023. This is particularly promising for shareholders as it is currently trading above its 50-day moving average price of $32.51 and has shown resilience above its two-hundred-day moving average price of $33.73. Despite shortcomings, the company maintains a healthy market cap of $17.84 billion and a low debt-to-equity ratio of just 0.70%, indicating healthy financials in the long run.
However, as previously stated, there were some negatives associated with the Q1 earnings report that negatively impacted its overall performance during the year-long stretch analyzed between May 2022 and May 2023. Firstly, PBA had a one-year low of $29.59 and a high of only $42.74; this indicates that despite having been an attractive investment to date, growth opportunities have not yet been fully realized.
Furthermore, PBA had reported an earnings per share (EPS) of $0.29 for Q1-2022 which unfortunately fell short on consensus expectations set at $0.52 EPS – resulting in investors showing some apprehension towards holding onto their investments long term.
The lackluster Q1 figures have since translated into mixed ratings from leading research firms such as National Bank Financial, who raised their target price from C$46 to C$47 this year; while Scotiabank lifted their price objective on shares from C$50 to C$51 early in February.
All said and done thus far buyers should expect moderate volatility for Pembina Pipeline Corporation with the possibility of long-term growth through their stocks. If PBA’s earning reports come in stronger than expected, we could see further growth in stock values with investors receiving added appreciation for maintaining their shares while waiting out potential results on a positive trajectory.
Pembina Pipeline Co’s Q2 2023 EPS Estimates Slump, but Dividend Payouts Offer Comfort to Investors
Pembina Pipeline Co, a leading Canadian energy infrastructure provider, has recently seen a slump in its Q2 2023 earnings per share (EPS) estimates. Equities research analysts at ATB Cap Markets have reduced their previous EPS forecast of $0.58 to $0.54 for the quarter which has left investors speculating about the company’s future prospects.
Despite the reduced EPS forecasts, Pembina Pipeline’s FY2023 earnings forecast remains positive with ATB Cap Markets estimating an EPS of $2.20. Currently, the consensus estimate for Pembina Pipeline’s current full-year earnings is pegged at $2.11 per share – a comforting signal for investors and analysts alike.
It is worth noting that Pembina Pipeline has declared a quarterly dividend which is scheduled to be paid on June 30th this year. The record date to receive this dividend is June 15th, and shareholders can expect to receive a sum of $0.493 per share as dividend payout; an increase from the company’s previous quarterly dividend of $0.49.
With the ex-dividend date set for June 14th, this represents a steady stream of income coming in for investors holding Pembina Pipeline stocks. Despite concerns regarding the EPS estimates for Q2 2023, these dividends are likely to soothe jittery investors and maintain market confidence in Pembina Pipeline.
This dip in Q2 2023 EPS might well represent only a temporary setback in an otherwise promising growth trajectory for the company. For investors who have been following Pembina Pipeline’s journey so far, they will note that it has established itself as one of Canada’s largest energy transportation and midstream services providers.
As it stands today, Pembina operates an integrated system of pipelines located primarily throughout western Canada and transports natural gas liquids across Canada to parts of North America where demand outstrips supply – something that positions it well with respect to current market trends.
In the long run, it remains to be seen whether this setback represents a pattern or whether it is just a temporary blip on the radar. However, in the short-term, investors can take solace in Pembina’s upcoming dividend payouts which reflect an affirmation of its business model and confidence in its future prospects.
