How the Wheels Came Off El Paso Pipeline Partners' Bus
El Paso Pipeline Partners (NYS: EPB) reported earnings on Feb. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), El Paso Pipeline Partners missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins dropped, and net margins increased.
El Paso Pipeline Partners booked revenue of $362.0 million. The eight analysts polled by S&P Capital IQ predicted a top line of $385.2 million on the same basis. GAAP reported sales were 52% lower than the prior-year quarter's $761.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.62 per share on the same basis. GAAP EPS of $0.36 for Q4 were 61% lower than the prior-year quarter's $0.93 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.2%, 190 basis points worse than the prior-year quarter. Operating margin was 54.1%, 250 basis points worse than the prior-year quarter. Net margin was 34.8%, 1,400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $384.2 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $1.59 billion. The average EPS estimate is $2.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 262 members out of 266 rating the stock outperform, and four members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give El Paso Pipeline Partners a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on El Paso Pipeline Partners is outperform, with an average price target of $38.42.
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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. Motley Fool newsletter services have recommended buying shares of El Paso Pipeline Partners. 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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