The 10-second takeaway
For the quarter ended March 31 (Q1), Kinder Morgan beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Kinder Morgan reported revenue of $3.06 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $2.92 billion on the same basis. GAAP reported sales were 65% higher than the prior-year quarter's $1.86 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 $0.28. The eight earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS of $0.28 for Q1 were much higher than the prior-year quarter's $0.03 per share. (The prior-year quarter included -$0.53 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.6%, 230 basis points better than the prior-year quarter. Operating margin was 33.4%, 560 basis points better than the prior-year quarter. Net margin was 9.5%, 840 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.06 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $12.47 billion. The average EPS estimate is $1.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 485 members out of 489 rating the stock outperform, and four members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 142 give Kinder Morgan a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan is outperform, with an average price target of $41.17.
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