The Gory Details on Genesis Energy's Double Fumble

Seth Jayson, The Motley Fool
Updated

Genesis Energy (NYS: GEL) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Genesis Energy missed estimates on revenues and missed estimates on earnings per share.

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


Margins expanded across the board.

Revenue details
 Genesis Energy chalked up revenue of $1.05 billion. The nine analysts polled by S&P Capital IQ hoped for a top line of $1.10 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $806.9 million.

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 $0.34. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.33 for Q4 were 200% higher than the prior-year quarter's $0.11 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 5.5%, 10 basis points better than the prior-year quarter. Operating margin was 2.9%, 100 basis points better than the prior-year quarter. Net margin was 2.6%, 160 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $5.50 billion. The average EPS estimate is $1.55.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 256 members out of 265 rating the stock outperform, and nine members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Genesis Energy 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 Genesis Energy is outperform, with an average price target of $37.14.

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The article The Gory Details on Genesis Energy's Double Fumble 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 position in any of the stocks mentioned. 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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