DCP Midstream Partners
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DCP Midstream Partners whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.
Margins increased across the board.
DCP Midstream Partners recorded revenue of $450.5 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $543.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $418.4 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 $0.83. The nine earnings estimates compiled by S&P Capital IQ averaged $0.52 per share. Non-GAAP EPS of $0.83 for Q4 were 113% higher than the prior-year quarter's $0.39 per share. GAAP EPS were $0.87 for Q4 compared to -$0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.2%, 900 basis points better than the prior-year quarter. Operating margin was 13.1%, much better than the prior-year quarter. Net margin was 10.5%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $757.3 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $2.41 billion. The average EPS estimate is $2.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 222 members out of 232 rating the stock outperform, and 10 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give DCP Midstream Partners a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DCP Midstream Partners is outperform, with an average price target of $49.13.
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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 DCP Midstream Partners, LP. 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.