The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kinder Morgan beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Kinder Morgan reported revenue of $3.08 billion. The five analysts polled by S&P Capital IQ foresaw revenue of $3.02 billion on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $2.02 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 $0.33. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share. GAAP EPS of $0.34 for Q4 were 240% higher than the prior-year quarter's $0.10 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.2%, 570 basis points better than the prior-year quarter. Operating margin was 31.6%, 330 basis points better than the prior-year quarter. Net margin was 11.3%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.93 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $11.90 billion. The average EPS estimate is $1.37.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 414 members out of 417 rating the stock outperform, and three members rating it underperform. Among 134 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Kinder Morgan a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan is outperform, with an average price target of $40.38.
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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. The Motley Fool recommends Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. 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.