Western Gas Partners Misses Where it Counts

Western Gas Partners (NYSE: WES  ) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Western Gas Partners beat slightly on revenues and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
Western Gas Partners reported revenue of $219.0 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $216.5 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $175.9 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 $0.33. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.42 per share. GAAP EPS of $0.33 for Q3 were 20% lower than the prior-year quarter's $0.41 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 44.1%, 150 basis points worse than the prior-year quarter. Operating margin was 22.5%, 340 basis points worse than the prior-year quarter. Net margin was 18.0%, 290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $233.4 million. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $862.6 million. The average EPS estimate is $1.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 240 members out of 245 rating the stock outperform, and five members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Western Gas Partners a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Gas Partners is outperform, with an average price target of $49.96.

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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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  • Report this Comment On November 04, 2012, at 6:33 PM, RegLeCrisp wrote:

    Seth Jayson misses where it counts. Way to push the button and pinch out another useless robo-trash article. The MF brand is so diluted because of this and other bottom feeding-tactics. This site needs an enema.

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