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Kinder Morgan Energy Partners Increases Sales but Misses Estimates on Earnings

Kinder Morgan Energy Partners (NYSE: KMP  ) reported earnings on Oct. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Kinder Morgan Energy Partners beat expectations on revenues and missed estimates on earnings per share.

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

Margins grew across the board.

Revenue details
Kinder Morgan Energy Partners reported revenue of $2.34 billion. The eight analysts polled by S&P Capital IQ looked for net sales of $2.18 billion on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $2.20 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 $0.57. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS were -$0.06 for Q3 against -$0.25 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 46.1%, 780 basis points better than the prior-year quarter. Operating margin was 25.6%, 520 basis points better than the prior-year quarter. Net margin was 16.2%, 640 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.49 billion. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $8.51 billion. The average EPS estimate is $2.04.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,453 members out of 1,504 rating the stock outperform, and 51 members rating it underperform. Among 431 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 415 give Kinder Morgan Energy Partners a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan Energy Partners is hold, with an average price target of $88.08.

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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. The Motley Fool has no positions in the stocks mentioned above. 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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