The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NuStar Energy crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share expanded significantly.
Margins contracted across the board.
NuStar Energy logged revenue of $1.93 billion. The eight analysts polled by S&P Capital IQ expected to see revenue of $1.17 billion. Sales were 61% higher than the prior-year quarter's $1.19 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.30. The nine earnings estimates compiled by S&P Capital IQ averaged $0.35 per share on the same basis. GAAP EPS of $0.93 for Q4 were 54% lower than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 6.5%, 550 basis points worse than the prior-year quarter. Operating margin was 2.5%, 340 basis points worse than the prior-year quarter. Net margin was 1.6%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.23 billion. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $5.55 billion. The average EPS estimate is $3.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 336 members out of 352 rating the stock outperform, and 16 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give NuStar Energy 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 NuStar Energy is hold, with an average price target of $60.58.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.