Are You Expecting This from Holly Energy Partners?

Seth Jayson, The Motley Fool
Updated

Holly Energy Partners (NYSE: HEP) is expected to report Q2 earnings on July 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Holly Energy Partners' revenue will grow 26.7% and EPS will improve 5.8%.

The average estimate for revenue is $64.5 million. On the bottom line, the average EPS estimate is $0.73.

Revenue details
Last quarter, Holly Energy Partners reported revenue of $63.5 million. GAAP reported sales were 41% higher than the prior-year quarter's $45.0 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.61. GAAP EPS of $0.60 for Q1 were 13% higher than the prior-year quarter's $0.53 per share.

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

Recent performance
For the preceding quarter, gross margin was 73.3%, 170 basis points better than the prior-year quarter. Operating margin was 53.9%, 230 basis points better than the prior-year quarter. Net margin was 25.9%, 10 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $275.6 million. The average EPS estimate is $3.03.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 100 members out of 113 rating the stock outperform, and 13 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Holly Energy Partners a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Holly Energy Partners is hold, with an average price target of $61.20.

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