Kinder Morgan Energy Partners Whiffs on Revenues

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Kinder Morgan Energy Partners (NYS: KMP) 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 Energy Partners whiffed on both revenue and earnings per share.

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


Gross margin increased, operating margin grew, and net margin dropped.

Revenue details
Kinder Morgan Energy Partners booked revenue of $1.85 billion. The nine analysts polled by S&P Capital IQ expected to see a top line of $2.36 billion on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $1.99 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
Non-GAAP EPS came in at $0.61. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.64 per share on the same basis. GAAP EPS of $0.06 for Q1 were 67% lower than the prior-year quarter's $0.18 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 52.3%, 870 basis points better than the prior-year quarter. Operating margin was 27.9%, 300 basis points better than the prior-year quarter. Net margin was 1.1%, 1,590 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.32 billion. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $9.59 billion. The average EPS estimate is $2.43.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,400 members out of 1,452 rating the stock outperform, and 52 members rating it underperform. Among 386 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 370 give Kinder Morgan Energy Partners a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan Energy Partners is hold, with an average price target of $84.97.

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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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