MarkWest Energy Partners Crushes Earnings Estimates

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MarkWest Energy Partners (NYS: MWE) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MarkWest Energy Partners whiffed on revenue and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP loss per share grew.

Margins shrank across the board.

Revenue details
MarkWest Energy Partners chalked up revenue of $333.9 million. The four analysts polled by S&P Capital IQ predicted sales of $403.7 million on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $356.6 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 $0.75. The six earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS were -$0.87 for Q4 versus -$0.76 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 44.6%, 790 basis points worse than the prior-year quarter. Operating margin was -1.0%, 830 basis points worse than the prior-year quarter. Net margin was -22.2%, 700 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $415.4 million. On the bottom line, the average EPS estimate is $0.63.

Next year's average estimate for revenue is $1.71 billion. The average EPS estimate is $2.72.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MarkWest Energy Partners is buy, with an average price target of $62.11.

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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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