Plains All American Pipeline Crushes Earnings Estimates (PAA)

Plains All American Pipeline Crushes Earnings Estimates

Plains All American Pipeline (NYSE: PAA ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Plains All American Pipeline whiffed on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share didn't move.

Margins expanded across the board.

Revenue details
Plains All American Pipeline logged revenue of $9.44 billion. The 10 analysts polled by S&P Capital IQ looked for revenue of $10.79 billion on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $8.89 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 $1.01. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.69 were the same as 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 6.4%, 60 basis points better than the prior-year quarter. Operating margin was 4.3%, 30 basis points better than the prior-year quarter. Net margin was 3.4%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.45 billion. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $41.94 billion. The average EPS estimate is $2.68.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Plains All American Pipeline is outperform, with an average price target of $50.64.

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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 position in any of the stocks mentioned. 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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