How the Wheels Came Off Holly Energy Partners' Bus
Holly Energy Partners L.P. (NYSE: HEP) reported earnings on July 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Holly Energy Partners met expectations on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved significantly while GAAP earnings per share shrank.
Gross margin expanded, operating margin was steady, and net margin contracted.
Holly Energy Partners logged revenue of $63.7 million. The five analysts polled by S&P Capital IQ hoped for sales of $64.5 million on the same basis. GAAP-reported sales were 25% higher than the prior-year quarter's $50.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The six earnings estimates compiled by S&P Capital IQ forecast $0.73 per share. GAAP EPS of $0.63 for Q2 were 8.7% lower than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 71.9%, 10 basis points better than the prior-year quarter. Operating margin was 53.6%, about the same as the prior-year quarter. Net margin was 27.1%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $71.3 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $275.6 million. The average EPS estimate is $3.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 100 members rating the stock outperform and 13 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Holly Energy Partners L.P 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 L.P is hold, with an average price target of $62.20.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Holly Energy Partners L.P. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Holly Energy Partners L.P to My Watchlist.