The 10-second takeaway
For the quarter ended March 31 (Q1), Kinder Morgan whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins increased, and net margins contracted.
Kinder Morgan booked revenue of $1.86 billion. The five analysts polled by S&P Capital IQ expected a top line of $2.34 billion on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $2.01 billion.
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 $0.56. The seven earnings estimates compiled by S&P Capital IQ averaged $0.31 per share on the same basis. GAAP EPS of $0.03 for Q1 were 86% lower than the prior-year quarter's $0.22 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 52.3%, 830 basis points better than the prior-year quarter. Operating margin was 27.9%, 1,040 basis points better than the prior-year quarter. Net margin was 1.1%, 660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.45 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $10.60 billion. The average EPS estimate is $1.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 148 members out of 150 rating the stock outperform, and two members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Kinder Morgan a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan is hold, with an average price target of $36.
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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 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.