The Gory Details on Breitburn Energy Partners's Double Miss

Breitburn Energy Partners (Nasdaq: BBEP  ) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Breitburn Energy Partners missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share dropped to a loss. GAAP loss per share contracted.

Gross margins shrank, operating margins expanded, net margins grew.

Revenue details
Breitburn Energy Partners booked revenue of $120.4 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $130.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 -$0.07. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. Non-GAAP EPS were -$0.07 for Q1 compared to $0.06 per share for the prior-year quarter. GAAP EPS were -$0.38 for Q1 versus -$0.76 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 46.2%, 830 basis points worse than the prior-year quarter. Operating margin was -18.4%, much better than the prior-year quarter. Net margin was -37.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $134.6 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $563.4 million. The average EPS estimate is $0.77.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 514 members out of 530 rating the stock outperform, and 16 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give Breitburn Energy Partners a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Breitburn Energy Partners is outperform, with an average price target of $22.54.

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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 recommends BreitBurn Energy Partners L.P. 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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