Kinder Morgan Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Kinder Morgan (NYS: KMI) reported earnings on July 17. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Kinder Morgan beat expectations on revenues and missed estimates on earnings per share.

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


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

Revenue details
 Kinder Morgan notched revenue of $3.38 billion. The four analysts polled by S&P Capital IQ hoped for revenue of $3.29 billion on the same basis. GAAP reported sales were 56% higher than the prior-year quarter's $2.17 billion.

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 $0.27. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS were $0.27 for Q2 compared to -$0.44 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 43.9%, 880 basis points worse than the prior-year quarter. Operating margin was 22.9%, 550 basis points worse than the prior-year quarter. Net margin was 8.2%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $3.36 billion. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $13.20 billion. The average EPS estimate is $1.30.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 509 members out of 515 rating the stock outperform, and six members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 give Kinder Morgan 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 Kinder Morgan is outperform, with an average price target of $42.08.

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The article Kinder Morgan 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 recommends Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. 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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