Regency Energy Partners Increases Sales but Misses Revenue Estimate

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Regency Energy Partners (NYS: RGP) reported earnings on May 9. Here are the numbers you need to know.

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

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


Margins improved across the board.

Revenue details
Regency Energy Partners recorded revenue of $357.9 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $379.6 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $319.0 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
EPS came in at $0.13. The seven earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.14 for Q1 were 100% higher than the prior-year quarter's $0.07 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 21.8%, 20 basis points better than the prior-year quarter. Operating margin was 4.0%, 150 basis points better than the prior-year quarter. Net margin was 7.9%, 350 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $391.7 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $1.60 billion. The average EPS estimate is $0.46.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Regency Energy Partners is outperform, with an average price target of $28.86.

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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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