TC Energy Corporation TRP is set to report fourth-quarter earnings on Feb. 14. The Zacks Consensus Estimate for earnings is pegged at 67 cents per share and the same for revenues is pinned at $2.43 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let us delve into the factors that might have influenced TRP’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of TRP’s Q3 Earnings & Surprise History
In the last reported quarter, the Calgary, Canada-based oil and gas storage and transportation service company’s adjusted earnings beat the consensus mark. TRP reported adjusted earnings of 76 cents per share, which beat the Zacks Consensus Estimate by 6 cents. This was primarily due to strong results from the company's Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Energy Solutions segments. This energy infrastructure provider's quarterly revenues of $4 billion outpaced the Zacks Consensus Estimate by $168 million.
TRP’s earnings beat the consensus estimate in each of the trailing four quarters, delivering an average surprise of 12.72%. This is depicted in the graph below:
TC Energy Corporation Price and EPS Surprise
TC Energy Corporation Price and EPS Surprise
TC Energy Corporation price-eps-surprise | TC Energy Corporation Quote
Trend in TRP’s Estimate Revision
The Zacks Consensus Estimate for fourth-quarter 2024 earnings has not witnessed any movement in the past 30 days. The estimated figure indicates a 22.03% year-over-year bottom-line decrease. Moreover, the Zacks Consensus Estimate for revenues indicates a decrease of 31.31% from the year-ago period’s level.
Factors to Consider Ahead of TRP’s Q4 Release
TC Energy makes money by operating and maintaining a vast network of pipelines that transport natural gas and oil across North America. It charges fees to companies that need to move these energy products from one place to another. Additionally, the company earns revenues from storing natural gas, operating power generation plants and offering energy-related services. By acting as a middleman for energy transportation, storage and power generation TRP generates income through its infrastructure and services.
TRP’s revenues are likely to have suffered in the quarter to be reported. Our model predicts fourth-quarter revenues to have decreased to $2,430.2 million from the year-ago quarter’s level of $3,112 million. This can be attributed to the poor performance of its segments. The Canadian Natural Gas Pipelines segment is expected to have decreased 18.1% year over year, totaling C$1,100.6 million, while the U.S. Natural Gas Pipelines segment is predicted to have decreased 25% at the same time, amounting to C$1,252.6 million.
The Mexico Natural Gas Pipelines segment is anticipated to have decreased 21.8% year over year, totaling C$172.8 million and the Liquids Pipelines segment is expected to have declined 20% at the same time, reaching C$585.8 million. Additionally, Power and Energy Solutions is anticipated to have cut by 27.3% year over year, totaling C$193.3 million.
On the cost side, TRP's efforts to reduce expenses are likely to have positively impacted its upcoming bottom line. We expect the company’s plant operating costs and other expenses to have reached C$904.7 million in the fourth quarter, which is 32.6% down from the year-ago quarter’s level of C$1,343 million. Additionally, total operating and other expenses are expected to have amounted to C$1,867.2 million, representing a 30.1% decline from the prior year's figure. On the other hand, the company’s fourth-quarter Depreciation and Amortization expenses are likely to have been C$569.2 million, down 20.6% from the year-ago quarter’s level.
What Does Our Model Predict?
Our proven model does not predict an earnings beat for TC Energy this season. 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. This is not the case here.
Earnings ESP of TRP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TRP’s Zacks Rank: TRP currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
CNX Resources CNX has an Earnings ESP of +3.60% and a Zacks Rank 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valued at around $4.57 billion, CLMT’s shares have gained 49.3% in a year. Notably, the Zacks Consensus Estimate for CNX’s 2025 earnings per share indicates 4.18% year-over-year growth.
Calumet, Inc. CLMT has an Earnings ESP of +7.11% and a Zacks Rank #2. Valued at around $1.39 billion, CLMT’s shares have gained 1% in a year.
Notably, the Zacks Consensus Estimate for CLMT’s 2025 earnings per share indicates 104.46% year-over-year growth.
California Resources CRC has an Earnings ESP of +2.59% and a Zacks Rank #3. The firm is scheduled to release earnings on March 3.
CRC’s earnings beat the consensus estimate in each of the trailing four quarters, delivering an average surprise of 13.11%. Valued at around $4.44 billion, CRC’s shares have lost 9.9% in a year.
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