MarkWest Energy Partners Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

MarkWest Energy Partners (NYS: MWE) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), MarkWest Energy Partners whiffed on revenues and missed estimates on earnings per share.

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


Gross margins contracted, operating margins grew, net margins increased.

Revenue details
MarkWest Energy Partners booked revenue of $350.5 million. The four analysts polled by S&P Capital IQ anticipated sales of $414.4 million on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $348.9 million.

anImage
anImage

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

EPS details
EPS came in at $0.46. The six earnings estimates compiled by S&P Capital IQ averaged $0.56 per share. GAAP EPS were $0.14 for Q1 against -$1.12 per share for the prior-year quarter.

anImage
anImage

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 55.9%, 10 basis points worse than the prior-year quarter. Operating margin was 15.0%, 1,880 basis points better than the prior-year quarter. Net margin was 4.6%, 2,870 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $425.8 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $2.42.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MarkWest Energy Partners is outperform, with an average price target of $64.75.

Are you missing a major story in the energy space? Read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement