Boardwalk Pipeline Partners Misses on Both Revenue and Earnings

Seth Jayson, The Motley Fool
Updated

Boardwalk Pipeline Partners (NYS: BWP) reported earnings on Feb. 6. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped.

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

Revenue details
Boardwalk Pipeline Partners reported revenue of $296.9 million. The nine analysts polled by S&P Capital IQ expected revenue of $317.4 million. Sales were 1.7% lower than the prior-year quarter's $302 million.

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

EPS details
Non-GAAP EPS came in at $0.39. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.40 per share on the same basis. GAAP EPS of $0.38 for Q4 were 12% lower than the prior-year quarter's $0.43 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 76.6%, 210 basis points better than the prior-year quarter. Operating margin was 39.9%, 60 basis points worse than the prior-year quarter. Net margin was 25.1%, 430 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $326.7 million. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is $1.42.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 400 members rating the stock outperform, and 22 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Boardwalk Pipeline Partners a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Boardwalk Pipeline Partners is hold, with an average price target of $30.73.

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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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