El Paso Pipeline Partners
The 10-second takeaway
For the quarter ended March 31 (Q1), El Paso Pipeline Partners missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded. GAAP earnings per share increased significantly.
Margins grew across the board.
El Paso Pipeline Partners reported revenue of $386.0 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $401.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.58. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. Non-GAAP EPS of $0.58 for Q1 were 7.4% higher than the prior-year quarter's $0.54 per share. GAAP EPS of $0.81 for Q1 were 50% higher than the prior-year quarter's $0.54 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 81.6%, 720 basis points better than the prior-year quarter. Operating margin was 64.5%, 760 basis points better than the prior-year quarter. Net margin was 45.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $392.9 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $1.63 billion. The average EPS estimate is $2.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 290 members out of 296 rating the stock outperform, and six members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give El Paso Pipeline 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 El Paso Pipeline Partners is hold, with an average price target of $42.23.
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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 El Paso Pipeline 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.