Energy Transfer Partners Increases Sales but Misses Estimates on Earnings

Energy Transfer Partners (NYSE: ETP  ) reported earnings on Feb. 15. Here are the numbers you need to know.

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

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

Margins contracted across the board.

Revenue details
Energy Transfer Partners logged revenue of $1.82 billion. The seven analysts polled by S&P Capital IQ expected revenue of $2.11 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $1.45 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.48. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.70 per share on the same basis. GAAP EPS of $0.41 for Q4 were 37% lower than the prior-year quarter's $0.65 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 28.0%, 230 basis points worse than the prior-year quarter. Operating margin was 18.6%, 250 basis points worse than the prior-year quarter. Net margin was 11.4%, 420 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.95 billion. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $7.76 billion. The average EPS estimate is $2.22.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 836 members out of 854 rating the stock outperform, and 18 members rating it underperform. Among 287 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 286 give Energy Transfer Partners a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energy Transfer Partners is outperform, with an average price target of $50.58.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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