The 10-second takeaway
For the quarter ended March 31 (Q1), Buckeye Partners beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Buckeye Partners logged revenue of $1.26 billion. The six analysts polled by S&P Capital IQ predicted sales of $1.20 billion on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $1.25 billion.
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 $0.54. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.76 per share. GAAP EPS of $0.54 for Q1 were 32% lower than the prior-year quarter's $0.79 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 10.4%, 30 basis points worse than the prior-year quarter. Operating margin was 6.4%, 100 basis points worse than the prior-year quarter. Net margin was 4.1%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $4.79 billion. The average EPS estimate is $3.24.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 222 members out of 239 rating the stock outperform, and 17 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Buckeye Partners 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 Buckeye Partners is outperform, with an average price target of $68.70.
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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.