Kinder Morgan Goes Negative

Kinder Morgan (NYS: KMI) reported earnings on Wednesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Kinder Morgan whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped to a loss.


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

Revenue details
Kinder Morgan reported revenue of $2.17 billion. The one analyst polled by S&P Capital IQ foresaw net sales of $3.02 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $2.03 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 $0.18. The five earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. GAAP EPS were -$0.15 for Q2 versus $0.17 per share for the prior-year quarter.

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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 53.0%, 2,000 basis points better than the prior-year quarter. Operating margin was 13.5%, 110 basis points better than the prior-year quarter. Net margin was -5.8%, 1,230 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.08 billion. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $10.59 billion. The average EPS estimate is $1.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 170 members rating the stock outperform and three members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Kinder Morgan a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan is outperform, with an average price target of $38.22.

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At the time this article was published

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