Energy Transfer Equity
The 10-second takeaway
For the quarter ended March 31 (Q1), Energy Transfer Equity beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Energy Transfer Equity reported revenue of $10.85 billion. The five analysts polled by S&P Capital IQ anticipated net sales of $9.95 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $1.69 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 $0.60. The six earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. Non-GAAP EPS of $0.60 for Q1 were 68% lower than the prior-year quarter's $1.88 per share. GAAP EPS of $0.32 for Q1 were 56% lower than the prior-year quarter's $0.73 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 9.2%, much worse than the prior-year quarter. Operating margin was 4.7%, 790 basis points worse than the prior-year quarter. Net margin was 0.8%, 900 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.40 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $42.26 billion. The average EPS estimate is $2.07.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 219 members out of 233 rating the stock outperform, and 14 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Energy Transfer Equity 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 Energy Transfer Equity is outperform, with an average price target of $61.33.
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