Kinder Morgan Energy Partners Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended March 31 (Q1), Kinder Morgan Energy Partners whiffed on both revenue and earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.


Gross margin increased, operating margin grew, and net margin dropped.

Revenue details
Kinder Morgan Energy Partners booked revenue of $1.85 billion. The nine analysts polled by S&P Capital IQ expected to see a top line of $2.36 billion on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $1.99 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.61. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.64 per share on the same basis. GAAP EPS of $0.06 for Q1 were 67% lower than the prior-year quarter's $0.18 per share.

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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 52.3%, 870 basis points better than the prior-year quarter. Operating margin was 27.9%, 300 basis points better than the prior-year quarter. Net margin was 1.1%, 1,590 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.32 billion. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $9.59 billion. The average EPS estimate is $2.43.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,400 members out of 1,452 rating the stock outperform, and 52 members rating it underperform. Among 386 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 370 give Kinder Morgan Energy Partners a green thumbs-up, and 16 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 $84.97.

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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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