Kinder Morgan Crushes Earnings Estimates

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

Kinder Morgan (NYS: KMI) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Kinder Morgan whiffed on revenues and crushed expectations on earnings per share.

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


Gross margins improved, operating margins increased, and net margins contracted.

Revenue details
Kinder Morgan booked revenue of $1.86 billion. The five analysts polled by S&P Capital IQ expected a top line of $2.34 billion on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $2.01 billion.

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 $0.56. The seven earnings estimates compiled by S&P Capital IQ averaged $0.31 per share on the same basis. GAAP EPS of $0.03 for Q1 were 86% lower than the prior-year quarter's $0.22 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 52.3%, 830 basis points better than the prior-year quarter. Operating margin was 27.9%, 1,040 basis points better than the prior-year quarter. Net margin was 1.1%, 660 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.45 billion. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $10.60 billion. The average EPS estimate is $1.25.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 148 members out of 150 rating the stock outperform, and two members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Kinder Morgan a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan is hold, with an average price target of $36.

Is Kinder Morgan the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." 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