Breitburn Energy Partners Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Breitburn Energy Partners (NAS: BBEP) reported earnings on Feb. 28. Here are the numbers you need to know.

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

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


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

Revenue details
 Breitburn Energy Partners reported revenue of $113.2 million. The eight analysts polled by S&P Capital IQ wanted to see net sales of $122.2 million on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $109.9 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 $1.17. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. Non-GAAP EPS of $1.17 for Q4 were 388% higher than the prior-year quarter's $0.24 per share. GAAP EPS were -$0.13 for Q4 versus -$0.51 per share for the prior-year quarter.

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 54.4%, 330 basis points worse than the prior-year quarter. Operating margin was 7.1%, much better than the prior-year quarter. Net margin was -8.8%, much better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $130.2 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $552.5 million. The average EPS estimate is $0.77.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 510 members out of 525 rating the stock outperform, and 15 members rating it underperform. Among 176 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give Breitburn Energy 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 Breitburn Energy Partners is outperform, with an average price target of $22.54.

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The article Breitburn Energy Partners Crushes Earnings Estimates 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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