The Gory Details of Regency Energy Partners' Earnings Miss

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

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

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

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

Revenue details
Regency Energy Partners booked revenue of $369.9 million. The four analysts polled by S&P Capital IQ foresaw revenue of $366.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $324.3 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 $0.09. The six earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS were $0.09 for Q4 against -$0.09 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 20.0%, 160 basis points worse than the prior-year quarter. Operating margin was 2.9%, 560 basis points worse than the prior-year quarter. Net margin was 3.6%, 640 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $375.1 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $0.52.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Regency Energy Partners is outperform, with an average price target of $28.00.

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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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  • Report this Comment On February 22, 2012, at 10:29 AM, toomuchgas wrote:

    Why does the headline say "Gory Details". Results looked in line. If you look deeper into the results their dividend distribution coverage improved markedly from the previous year.

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