The 10-second takeaway
For the quarter ended March 31 (Q1), Genesis Energy beat expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins improved across the board.
Genesis Energy reported revenue of $932.9 million. The six analysts polled by S&P Capital IQ looked for sales of $884.9 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $689.8 million.
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 $0.27. The seven earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.27 for Q1 were 145% higher than the prior-year quarter's $0.11 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 5.5%, 50 basis points better than the prior-year quarter. Operating margin was 2.8%, 90 basis points better than the prior-year quarter. Net margin was 2.1%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $927.9 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $3.81 billion. The average EPS estimate is $1.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 249 members out of 258 rating the stock outperform, and nine members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 85 give Genesis Energy a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genesis Energy is outperform, with an average price target of $32.86.
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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.