How the Wheels Came Off Genesis Energy's Bus
Genesis Energy (NYS: GEL) filed its 10-K on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Genesis Energy beat slightly on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margin shrank, operating margin increased, and net margin expanded.
Genesis Energy notched revenue of $806.9 million. The five analysts polled by S&P Capital IQ expected revenue of $798.9 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $602.2 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 $0.18. The eight earnings estimates compiled by S&P Capital IQ predicted $0.30 per share on the same basis. GAAP EPS of $0.11 for Q4 were 450% higher than the prior-year quarter's $0.02 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 5.4%, 70 basis points worse than the prior-year quarter. Operating margin was 1.9%, 1,280 basis points better than the prior-year quarter. Net margin was 1.0%, 1,340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $864.6 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $3.64 billion. The average EPS estimate is $1.08.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 252 members out of 261 rating the stock outperform, and nine members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Genesis Energy 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 Genesis Energy is outperform, with an average price target of $30.01.
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