Is it time to Buy before this week’s earning report Magellan Midstream Partners (NYSE:MMP)

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Earnings results for Magellan Midstream Partners (NYSE:MMP)

Magellan Midstream Partners L.P. is expected* to report earnings on 10/30/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.85. The reported EPS for the same quarter last year was $1.19.

Magellan Midstream Partners last posted its earnings data on July 30th, 2020. The pipeline company reported $0.59 earnings per share for the quarter, missing analysts’ consensus estimates of $0.74 by $0.15. The firm had revenue of $460.40 million for the quarter, compared to analyst estimates of $576.07 million. Its revenue was down 34.4% compared to the same quarter last year. Magellan Midstream Partners has generated $4.76 earnings per share over the last year and currently has a price-to-earnings ratio of 8.3. Magellan Midstream Partners has confirmed that its next quarterly earnings report will be published on Friday, October 30th, 2020.

Analyst Opinion on Magellan Midstream Partners (NYSE:MMP)

18 Wall Street analysts have issued ratings and price targets for Magellan Midstream Partners in the last 12 months. Their average twelve-month price target is $50.78, predicting that the stock has a possible upside of 42.96%. The high price target for MMP is $59.00 and the low price target for MMP is $42.00. There are currently 2 hold ratings and 16 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Magellan Midstream Partners has received a consensus rating of Buy. The company’s average rating score is 2.89, and is based on 16 buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $50.78, Magellan Midstream Partners has a forecasted upside of 43.0% from its current price of $35.52. Magellan Midstream Partners has only been the subject of 3 research reports in the past 90 days.

Dividend Strength: Magellan Midstream Partners (NYSE:MMP)

Magellan Midstream Partners is a leading dividend payer. It pays a dividend yield of 11.82%, putting its dividend yield in the top 25% of dividend-paying stocks. Magellan Midstream Partners has been increasing its dividend for 10 years. The dividend payout ratio of Magellan Midstream Partners is 86.34%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on EPS estimates, Magellan Midstream Partners will have a dividend payout ratio of 100.24% in the coming year. This indicates that Magellan Midstream Partners may not be able to sustain their current dividend.

Insiders buying/selling: Magellan Midstream Partners (NYSE:MMP)

In the past three months, Magellan Midstream Partners insiders have not sold or bought any company stock. Only 0.29% of the stock of Magellan Midstream Partners is held by insiders. 61.73% of the stock of Magellan Midstream Partners is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Magellan Midstream Partners (NYSE:MMP

Earnings for Magellan Midstream Partners are expected to grow by 8.18% in the coming year, from $3.79 to $4.10 per share. The P/E ratio of Magellan Midstream Partners is 8.28, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 18.75. The P/E ratio of Magellan Midstream Partners is 8.28, which means that it is trading at a less expensive P/E ratio than the Oils/Energy sector average P/E ratio of about 17.56. Magellan Midstream Partners has a P/B Ratio of 2.99. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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