Genesis Energy Beats on the Top Line

Genesis Energy (NYSE: GEL  ) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Genesis Energy beat expectations on revenue and met expectations on earnings per share.

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

Margins improved across the board.

Revenue details
Genesis Energy reported revenue of $932.9 million. The six analysts polled by S&P Capital IQ looked for sales of $884.9 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $689.8 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 $0.27. The seven earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.27 for Q1 were 145% higher than the prior-year quarter's $0.11 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 5.5%, 50 basis points better than the prior-year quarter. Operating margin was 2.8%, 90 basis points better than the prior-year quarter. Net margin was 2.1%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $927.9 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $3.81 billion. The average EPS estimate is $1.05.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 249 members out of 258 rating the stock outperform, and nine members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 85 give Genesis Energy a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genesis Energy is outperform, with an average price target of $32.86.

How did Genesis Energy treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in our free report: "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.

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.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1875823, ~/Articles/ArticleHandler.aspx, 7/25/2014 6:14:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement