What's in the Offing for CorEnergy (CORR) in Q4 Earnings? - March 6, 2023

March 6, 2023

CorEnergy Infrastructure Trust, Inc. (CORR - Free Report) is slated to report fourth-quarter and full-year 2022 earnings on Mar 7, before the opening bell. The company’s quarterly results are likely to reflect significant year-over-year growth in earnings per share (EPS).

In the last reported quarter, CORR, which owns and operates or leases regulated natural gas transmission and distribution lines and crude oil gathering, storage and transmission pipelines and associated rights-of-way, incurred a net loss per common share of $1.17.

Let us see how things have shaped up before the fourth-quarter earnings release.

During the fourth quarter, this Maryland-based real estate investment trust (REIT) is expected to have benefited from its Crimson pipelines, which provide a critical link between California crude oil production and California refineries. These operate under fixed tariffs for volumes transported with long-term investment-grade customers. This is likely to have led to stable revenue generation for the company during the to-be-reported quarter.  

The company’s MoGas and Omega natural gas operations, too, are likely to have exhibited decent performance during the quarter.

However, higher maintenance expenditures and disruptions surrounding the global supply of crude oil following the war in Ukraine might have cast a pall on CORR’s quarterly performance.  

CorEnergy’s activities during the quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly EPS has been unchanged at 41 cents in the past month. The figure, however, implies a significant increase from the year-ago reported number.

For 2022, management projected adjusted EBITDA in the range of $42-$44 million. The maintenance capital expenditures are expected to be between $8 million and $9 million.

For the full year, the Zacks Consensus Estimate for EPS has been unchanged at $1.54 over the past month. The figure, however, indicates considerable growth year over year.

Earnings Whispers

Our proven model does not conclusively predict a surprise in terms of EPS for CorEnergy this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that is not the case here.

Earnings ESP:  It has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CORR currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Performance of Other REITs

Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2022 funds from operations (FFO) per share of $1.86 outpaced the Zacks Consensus Estimate of $1.84. The figure increased 18.7% year over year.

The quarterly figure also exceeded the mid-point of the company’s fourth-quarter guidance by a cent, reflecting portfolio outperformance. In addition, BXP experienced solid leasing activity in the quarter. The company revised its 2023 outlook for FFO per share.

Public Storage (PSA - Free Report) reported fourth-quarter 2022 core FFO per share of $4.16, increasing 17.5% year over year. The core FFO per share, excluding the contribution from the company’s equity investment in PS Business Parks, Inc., was $4.16. Both figures surpassed the Zacks Consensus Estimate of $3.99.

PSA’s results reflected better-than-anticipated top-line growth, aided by an improvement in the realized annual rent per occupied square foot. The company also benefited from its expansion efforts through acquisitions, developments and extensions.

Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2022 AFFO per share of $2.14, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.97.

ARE’s results reflected decent leasing activity and rental rate growth during the quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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