Williams Partners Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Williams Partners (NYS: WPZ) reported earnings on Feb. 20. Here are the numbers you need to know.

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

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


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

Revenue details
 Williams Partners recorded revenue of $1.85 billion. The six analysts polled by S&P Capital IQ predicted a top line of $1.87 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.42. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.42 for Q4 were 69% lower than the prior-year quarter's $1.35 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 38.0%, 640 basis points better than the prior-year quarter. Operating margin was 19.7%, 530 basis points worse than the prior-year quarter. Net margin was 15.7%, 600 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $2.09 billion. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $8.09 billion. The average EPS estimate is $2.23.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 263 members out of 276 rating the stock outperform, and 13 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Williams Partners 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 Williams Partners is outperform, with an average price target of $59.91.

Is Williams Partners the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

The article Williams Partners Increases Sales but Misses Estimates on Earnings 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement