El Paso's Earnings Beat Last Year's by 40%

Before you go, we thought you'd like these...
Before you go close icon

El Paso (NYS: EP) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), El Paso missed estimates on revenue and met expectations on earnings per share.

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

Gross margin contracted, operating margin shrank, and net margin increased.

Revenue details
El Paso recorded revenue of $1.23 billion. The five analysts polled by S&P Capital IQ expected to see revenue of $1.35 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $984.0 million.

anImage

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

EPS details
Non-GAAP EPS came in at $0.28. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share on the same basis. GAAP EPS of $0.22 for Q4 were 144% higher than the prior-year quarter's $0.09 per share.

anImage

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 63.8%, 160 basis points worse than the prior-year quarter. Operating margin was 21.6%, 960 basis points worse than the prior-year quarter. Net margin was 15.0%, 780 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $5.32 billion. The average EPS estimate is $1.18.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 853 members out of 887 rating the stock outperform, and 34 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 give El Paso a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on El Paso is outperform, with an average price target of $27.33.

Are you missing a major story in the energy space? Read about it in our free report: "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners