Williams Partners Whiffs on Revenues

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Williams Partners (NYS: WPZ) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Williams Partners whiffed on revenues and missed estimates on earnings per share.

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


Margins improved across the board.

Revenue details
Williams Partners booked revenue of $1.69 billion. The five analysts polled by S&P Capital IQ expected a top line of $2.01 billion on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $1.58 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
EPS came in at $0.85. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.90 per share. GAAP EPS of $0.85 for Q1 were 20% lower than the prior-year quarter's $1.06 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 32.7%, 270 basis points better than the prior-year quarter. Operating margin was 25.3%, 110 basis points better than the prior-year quarter. Net margin was 20.7%, 130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.06 billion. On the bottom line, the average EPS estimate is $0.83.

Next year's average estimate for revenue is $8.06 billion. The average EPS estimate is $3.51.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 251 members out of 263 rating the stock outperform, and 12 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Williams Partners a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams Partners is outperform, with an average price target of $64.50.

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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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