The Gory Details on MarkWest Energy Partners's Double Miss

Seth Jayson, The Motley Fool
Updated

MarkWest Energy Partners (NYS: MWE) reported earnings on Feb. 28. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased. GAAP earnings per share expanded.


Margins expanded across the board.

Revenue details
 MarkWest Energy Partners booked revenue of $371.5 million. The six analysts polled by S&P Capital IQ predicted revenue of $400.0 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $424.8 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 $0.22. The eight earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS were $0.22 for Q4 compared to -$0.87 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 59.4%, 290 basis points better than the prior-year quarter. Operating margin was 17.5%, much better than the prior-year quarter. Net margin was 8.6%, much better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $330.8 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $1.53.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MarkWest Energy Partners is outperform, with an average price target of $60.17.

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The article The Gory Details on MarkWest Energy Partners's Double Miss 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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