The 10-second takeaway
For the quarter ended March 31 (Q1), NuStar Energy beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins shrank across the board.
NuStar Energy logged revenue of $1.74 billion. The four analysts polled by S&P Capital IQ predicted a top line of $1.57 billion on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $1.23 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 $0.23. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.32 per share on the same basis. GAAP EPS of $0.37 for Q1 were 23% higher than the prior-year quarter's $0.30 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 6.9%, 300 basis points worse than the prior-year quarter. Operating margin was 2.8%, 170 basis points worse than the prior-year quarter. Net margin was 1.5%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.69 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $6.52 billion. The average EPS estimate is $2.84.
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 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give NuStar Energy a green thumbs-up, and two 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 $60.36.
Is NuStar Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in our free report: "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add NuStar Energy to My Watchlist.
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.