Energy Transfer Equity Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Energy Transfer Equity (NYS: ETE) reported earnings on Nov. 7. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Energy Transfer Equity beat expectations on revenues and missed estimates on earnings per share.

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


Gross margins expanded, operating margins expanded, net margins contracted.

Revenue details
 Energy Transfer Equity notched revenue of $2.17 billion. The four analysts polled by S&P Capital IQ hoped for a top line of $2.11 billion on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $2.10 billion.

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 $0.13. The four earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.65 for Q3 were 110% higher than the prior-year quarter's $0.31 per share.

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 32.7%, 800 basis points better than the prior-year quarter. Operating margin was 16.9%, 400 basis points better than the prior-year quarter. Net margin was 1.6%, 170 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $5.30 billion. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $10.27 billion. The average EPS estimate is $1.91.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 221 members out of 234 rating the stock outperform, and 13 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Energy Transfer Equity a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energy Transfer Equity is outperform, with an average price target of $49.11.

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The article Energy Transfer Equity Misses Where it Counts originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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