Analysts Lower Earnings Estimates for Pembina Pipeline Corp.

Investment analysts at Zacks Research have revised their earnings per share estimates for Pembina Pipeline Corp. (NYSE: PBA) for the fiscal year 2025. In a report published on December 26, 2024, Zacks lowered its forecast to $1.87 per share, down from the previous estimate of $1.88. The firm currently maintains a “Strong Sell” rating on the stock, which contrasts with the consensus estimate for Pembina’s full-year earnings, projected at $2.15 per share.

In addition to the annual estimate, Zacks provided forecasts for Pembina’s quarterly earnings. For the fourth quarter of 2025, they anticipate earnings of $0.53 per share, while estimates for the following quarters include $0.51 in Q1 2026, $0.50 in Q2 2026, and $0.54 in Q3 2026. Looking further ahead, Q2 2027 earnings are estimated at $0.37 per share and Q3 2027 at $0.30 per share.

Several other research firms have also adjusted their outlooks on Pembina Pipeline. TD Securities recently reduced its price target on the shares from $65.00 to $60.00, while maintaining a “buy” rating. Meanwhile, BMO Capital Markets reaffirmed its “outperform” rating, and Weiss Ratings issued a “hold (c)” rating. Currently, one analyst rates the stock as a Strong Buy, six as Buy, two as Hold, and two as Sell, leading to an average rating of “Moderate Buy” with a target price of $60.00 according to MarketBeat.

Pembina Pipeline’s Recent Performance and Market Standing

On December 26, 2024, shares of Pembina Pipeline opened at $38.19. The company has experienced fluctuations in its stock price, with a one-year low of $34.13 and a high of $42.40. Financial metrics indicate a current ratio of 0.53, a quick ratio of 0.41, and a debt-to-equity ratio of 0.77. The market capitalization of Pembina Pipeline stands at approximately $22.19 billion, with a price-to-earnings ratio of 19.09.

In its most recent earnings release on November 6, 2024, Pembina reported earnings of $0.31 per share, missing the consensus estimate of $0.45 by $0.14. The company generated revenue of $911.47 million for the quarter, which is significantly lower than the expected $1.42 billion. This revenue figure also represents a decrease of 2.9% compared to the same quarter in the previous year.

Institutional Trading and Dividend Announcement

Institutional trading activity has been notable for Pembina Pipeline, with several hedge funds making significant adjustments to their holdings. Goldman Sachs Group Inc. increased its stake in Pembina by 78.1% during the first quarter, acquiring an additional 3,108,920 shares. Other notable increases include Tectonic Advisors LLC, which raised its position by 64.6%, and First Trust Advisors LP, which boosted its holdings by 411.1%.

As of now, institutional investors and hedge funds collectively own approximately 55.37% of Pembina’s stock.

Additionally, Pembina Pipeline has declared a quarterly dividend of $0.71, set to be paid on December 31, 2024, to stockholders of record as of December 15, 2024. This dividend represents an annualized payout of $2.84 and a dividend yield of 7.4%, although the company’s dividend payout ratio stands at 101.50%.

Pembina Pipeline Corporation, based in North America, specializes in developing, owning, and operating midstream energy infrastructure. The firm focuses on transporting, storing, and processing hydrocarbons, catering to various sectors, including oil and gas producers and refiners. Its operations are primarily situated in Western Canada, with significant activities in Alberta and British Columbia, but also extend into the United States.