The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Buckeye Partners whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins increased, net margins dropped.
Buckeye Partners logged revenue of $1.15 billion. The six analysts polled by S&P Capital IQ expected net sales of $1.31 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $1.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.96. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. GAAP EPS of $0.35 for Q4 were 45% lower than the prior-year quarter's $0.64 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.9%, 320 basis points better than the prior-year quarter. Operating margin was 10.7%, 400 basis points better than the prior-year quarter. Net margin was 3.0%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.28 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $4.94 billion. The average EPS estimate is $3.30.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 231 members out of 249 rating the stock outperform, and 18 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Buckeye Partners a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Buckeye Partners is hold, with an average price target of $55.73.
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