Kinder Morgan Energy Partners Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

Kinder Morgan Energy Partners (NYS: KMP) reported earnings on Jan. 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kinder Morgan Energy Partners whiffed on revenues and whiffed on earnings per share.

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

Margins increased across the board.

Revenue details
Kinder Morgan Energy Partners reported revenue of $2.0 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $2.4 billion. Sales were 4.0% higher than the prior-year quarter's $1.9 billion

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.55. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.62 per share on the same basis. GAAP EPS of $0.51 for Q4 were 21% higher than the prior-year quarter's $0.42 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.2%, 200 basis points better than the prior-year quarter. Operating margin was 26.1%, 160 basis points better than the prior-year quarter. Net margin was 23.7%, 250 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.4 billion. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $9.7 billion. The average EPS estimate is $2.22.

Investor Sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,356 members out of 1,408 rating the stock outperform, and 52 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 430 give Kinder Morgan Energy Partners a green thumbs-up, and 18 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 $75.20.

At the time thisarticle 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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