The Gory Details on Genesis Energy's Double Fumble

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 14, 2013 at 12:00AM
Other

Genesis Energy (NYSE: GEL) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Genesis Energy missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Genesis Energy chalked up revenue of $1.05 billion. The nine analysts polled by S&P Capital IQ hoped for a top line of $1.10 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $806.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.33 for Q4 were 200% 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.

Margin details
For the quarter, gross margin was 5.5%, 10 basis points better than the prior-year quarter. Operating margin was 2.9%, 100 basis points better than the prior-year quarter. Net margin was 2.6%, 160 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $5.50 billion. The average EPS estimate is $1.55.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 256 members out of 265 rating the stock outperform, and nine members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Genesis Energy 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 Genesis Energy is outperform, with an average price target of $37.14.

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