Energy Transfer Partners Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

Energy Transfer Partners (NYS: ETP) reported earnings yesterday. Here are the numbers you need to know.

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

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


Gross margins increased, operating margins dropped, and net margins expanded.

Revenue details
Energy Transfer Partners reported revenue of $1.31 billion. The six analysts polled by S&P Capital IQ predicted sales of $1.79 billion on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $1.69 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
EPS came in at $0.25. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. GAAP EPS of $4.35 for Q1 were much higher than the prior-year quarter's $0.71 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 31%, 80 basis points better than the prior-year quarter. Operating margin was 19.4%, 210 basis points worse than the prior-year quarter. Net margin was 85.4%, 7,080 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.68 billion. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $6.83 billion. The average EPS estimate is $1.94.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 834 members rating the stock outperform and 17 members rating it underperform. Among 238 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 237 give Energy Transfer 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 Energy Transfer Partners is hold, with an average price target of $50.45.

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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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