The 10-second takeaway
For the quarter ended Dec. 31 (Q4), El Paso missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margin contracted, operating margin shrank, and net margin increased.
El Paso recorded revenue of $1.23 billion. The five analysts polled by S&P Capital IQ expected to see revenue of $1.35 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $984.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share on the same basis. GAAP EPS of $0.22 for Q4 were 144% higher than the prior-year quarter's $0.09 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 63.8%, 160 basis points worse than the prior-year quarter. Operating margin was 21.6%, 960 basis points worse than the prior-year quarter. Net margin was 15.0%, 780 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $5.32 billion. The average EPS estimate is $1.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 853 members out of 887 rating the stock outperform, and 34 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 give El Paso a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on El Paso is outperform, with an average price target of $27.33.
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