Western Gas Partners Increases Sales but Misses Estimates on Earnings

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Western Gas Partners (NYS: WES) reported earnings on Feb. 27. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Western Gas Partners recorded revenue of $175.9 million. The five analysts polled by S&P Capital IQ expected sales of $166.7 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $127.1 million.

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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
Non-GAAP EPS came in at $0.41. The nine earnings estimates compiled by S&P Capital IQ predicted $0.45 per share on the same basis. GAAP EPS of $0.35 for Q3 were 24% lower than the prior-year quarter's $0.46 per share.

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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 46.2%, 770 basis points worse than the prior-year quarter. Operating margin was 24.2%, 730 basis points worse than the prior-year quarter. Net margin was 19.2%, 840 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $179.9 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $653.0 million. The average EPS estimate is $1.65.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 243 members out of 247 rating the stock outperform, and four members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Western Gas Partners a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Gas Partners is outperform, with an average price target of $42.73.

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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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