Regency Energy Partners Goes Negative

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Regency Energy Partners (NYS: RGP) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Regency Energy Partners missed estimates on revenues and missed expectations on earnings per share.

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


Gross margins grew, operating margins shrank, net margins dropped.

Revenue details
Regency Energy Partners chalked up revenue of $355.4 million. The four analysts polled by S&P Capital IQ looked for revenue of $380.2 million on the same basis. GAAP reported sales were 5.1% lower than the prior-year quarter's $374.5 million.

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 -$0.08. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS were -$0.08 for Q4 versus $0.06 per share for the prior-year quarter.

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 20.6%, 60 basis points better than the prior-year quarter. Operating margin was -0.5%, 340 basis points worse than the prior-year quarter. Net margin was -2.8%, 640 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $392.4 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $1.59 billion. The average EPS estimate is $0.50.

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 $26.11.

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The article Regency Energy Partners Goes Negative originally appeared on Fool.com.

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. TMFDisclosureHere

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