Scotiabank Decreases Earnings Estimates for Pembina Pipeline

Key Points

• Scotiabank lowered Pembina Pipeline’s FY2026 EPS estimate to $2.34 from $2.42 and projects FY2027 EPS of $2.28. The firm maintained a “Sector Perform” rating, while analysts’ consensus rating is “Hold” with an average $64 target price.
• Pembina’s latest quarterly results exceeded expectations, with EPS of $0.59 versus the $0.52 consensus and revenue of $1.11 billion versus $1.06 billion expected. However, revenue declined 7.7% year over year and EPS fell from $0.80 in the prior-year quarter.
• The company increased its quarterly dividend to $0.735 per share, or $2.94 annually, representing a 5.7% yield; its payout ratio stands at 110.94%. Institutional investors own 55.37% of the stock.

Pembina Pipeline Corp. (NYSE:PBA - Free Report) TSE: PPL - Scotiabank lowered their FY2026 earnings per share estimates for Pembina Pipeline in a research note issued on Thursday, July 23rd. Scotiabank analyst R. Hope now expects that the pipeline company will post earnings per share of $2.34 for the year, down from their prior estimate of $2.42. Scotiabank has a "Sector Perform" rating on the stock. The consensus estimate for Pembina Pipeline's current full-year earnings is $2.20 per share. Scotiabank also issued estimates for Pembina Pipeline's FY2027 earnings at $2.28 EPS.

Pembina Pipeline (NYSE:PBA - Get Free Report) TSE: PPL last announced its quarterly earnings data on Thursday, May 7th. The pipeline company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.07. Pembina Pipeline had a return on equity of 11.47% and a net margin of 22.22%.The firm had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same period in the previous year, the company earned $0.80 earnings per share. Pembina Pipeline's quarterly revenue was down 7.7% on a year-over-year basis.

PBA has been the topic of several other reports. Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Pembina Pipeline in a research report on Friday, July 3rd. TD Securities reaffirmed a "buy" rating on shares of Pembina Pipeline in a report on Thursday, July 16th. Weiss Ratings lowered shares of Pembina Pipeline from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, July 13th. BMO Capital Markets reissued a "market perform" rating and set a $68.00 target price on shares of Pembina Pipeline in a report on Friday, July 3rd. Finally, Barclays reissued an "overweight" rating on shares of Pembina Pipeline in a report on Thursday, May 21st. Six investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $64.00.

Pembina Pipeline Price Performance

Shares of PBA opened at $51.37 on Monday. The firm has a market cap of $29.87 billion, a price-to-earnings ratio of 26.75 and a beta of 0.57. The stock has a 50 day moving average of $48.33 and a 200-day moving average of $45.04. The company has a current ratio of 0.83, a quick ratio of 0.68 and a debt-to-equity ratio of 0.84. Pembina Pipeline has a 52 week low of $35.45 and a 52 week high of $51.58.

Pembina Pipeline Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a dividend of $0.735 per share. This represents a $2.94 dividend on an annualized basis and a dividend yield of 5.7%. The ex-dividend date was Monday, June 15th. This is a positive change from Pembina Pipeline's previous quarterly dividend of $0.71. Pembina Pipeline's payout ratio is currently 110.94%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PBA. Empowered Funds LLC grew its stake in Pembina Pipeline by 1.0% during the 4th quarter. Empowered Funds LLC now owns 24,449 shares of the pipeline company's stock worth $931,000 after buying an additional 248 shares during the last quarter. Larson Financial Group LLC lifted its stake in Pembina Pipeline by 32.4% in the third quarter. Larson Financial Group LLC now owns 1,059 shares of the pipeline company's stock valued at $43,000 after buying an additional 259 shares during the last quarter. Ethic Inc. lifted its stake in Pembina Pipeline by 2.0% in the fourth quarter. Ethic Inc. now owns 14,150 shares of the pipeline company's stock valued at $539,000 after buying an additional 278 shares during the last quarter. Broderick Brian C boosted its holdings in shares of Pembina Pipeline by 0.9% during the first quarter. Broderick Brian C now owns 32,823 shares of the pipeline company's stock valued at $1,469,000 after acquiring an additional 300 shares during the period. Finally, Brown Brothers Harriman & Co. boosted its holdings in shares of Pembina Pipeline by 3.6% during the fourth quarter. Brown Brothers Harriman & Co. now owns 9,768 shares of the pipeline company's stock valued at $372,000 after acquiring an additional 341 shares during the period. Institutional investors and hedge funds own 55.37% of the company's stock.

Pembina Pipeline Company Profile

Pembina Pipeline Corporation NYSE: PBA is a North American energy infrastructure company that develops, owns and operates midstream assets that transport, store and process hydrocarbons. Its core business focuses on the transportation of crude oil, natural gas liquids (NGLs) and condensate, along with gas processing, fractionation, storage and related marketing services. Pembina serves producers, refiners and other energy companies by providing pipeline capacity, terminal services and midstream solutions that link upstream production to downstream markets and export facilities.

The company's asset base is concentrated in Western Canada, including major operations in Alberta and British Columbia, and it also has operations and commercial activities that extend into the United States.

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