MarkWest Energy Partners Goes Negative

Seth Jayson, The Motley Fool
Updated

MarkWest Energy Partners (NYS: MWE) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), MarkWest Energy Partners missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank to a loss.


Gross margins contracted, operating margins grew, net margins contracted.

Revenue details
 MarkWest Energy Partners logged revenue of $376.0 million. The five analysts polled by S&P Capital IQ foresaw revenue of $414.0 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $399.2 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 $0.11. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. Non-GAAP EPS of $0.11 for Q1 were 76% lower than the prior-year quarter's $0.46 per share. GAAP EPS were -$0.12 for Q1 against $0.14 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%, 190 basis points worse than the prior-year quarter. Operating margin was 17.2%, 410 basis points better than the prior-year quarter. Net margin was -4.1%, 810 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $428.3 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $1.84 billion. The average EPS estimate is $1.37.

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 $61.73.

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The article MarkWest Energy Partners Goes Negative 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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