Energy Transfer Equity
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Energy Transfer Equity beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins expanded, operating margins expanded, net margins contracted.
Energy Transfer Equity notched revenue of $2.17 billion. The four analysts polled by S&P Capital IQ hoped for a top line of $2.11 billion on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $2.10 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 $0.13. The four earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.65 for Q3 were 110% higher than the prior-year quarter's $0.31 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 32.7%, 800 basis points better than the prior-year quarter. Operating margin was 16.9%, 400 basis points better than the prior-year quarter. Net margin was 1.6%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.30 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $10.27 billion. The average EPS estimate is $1.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 221 members out of 234 rating the stock outperform, and 13 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Energy Transfer Equity a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energy Transfer Equity is outperform, with an average price target of $49.11.
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