Copano Energy Increases Sales but Misses Revenue Estimate (CPNO)

Copano Energy Increases Sales but Misses Revenue Estimate

Copano Energy (Nasdaq: CPNO ) reported earnings on May 9. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Copano Energy logged revenue of $337.2 million. The three analysts polled by S&P Capital IQ expected to see a top line of $352.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $289.9 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 -$1.79. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share. GAAP EPS were -$2.20 for Q1 against -$0.07 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 13.7%, 190 basis points worse than the prior-year quarter. Operating margin was 3.2%, 190 basis points worse than the prior-year quarter. Net margin was -43.8%, 4,500 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $422.5 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $0.67.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 336 members out of 351 rating the stock outperform, and 15 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Copano Energy a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Copano Energy is outperform, with an average price target of $38.00.

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Comments from our Foolish Readers

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Report this Comment On May 10, 2012, at 8:07 PM, BJHorowitz wrote:

Remember Copano Energy is a LLC. Like a partnership, they do not wish to have earnings, only free cash flow. The cash flow is equal to the last qtr of last year, so revenues may be tough for a while, but if free cash flow holds up we should be alright.