Buckeye Partners Increases Sales but Misses Estimates on Earnings

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Buckeye Partners (NYS: BPL) reported earnings on Feb. 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Buckeye Partners met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.

Gross margins shrank, operating margins grew, net margins expanded.

Revenue details
Buckeye Partners reported revenue of $1.12 billion. The five analysts polled by S&P Capital IQ expected revenue of $1.13 billion on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $1.02 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.64. The one earnings estimate compiled by S&P Capital IQ anticipated $0.82 per share. GAAP EPS were $0.64 for Q3 compared to -$1.88 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 10.4%, 220 basis points worse than the prior-year quarter. Operating margin was 6.7%, 150 basis points better than the prior-year quarter. Net margin was 4.5%, 1,270 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $4.57 billion. The average EPS estimate is $3.25.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 214 members out of 232 rating the stock outperform, and 18 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Buckeye Partners a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Buckeye Partners is outperform, with an average price target of $69.60.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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