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Kinder Morgan Energy Partners Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:51PM

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Just the facts, Fool.

Kinder Morgan Energy Partners (NYSE: KMP) reported earnings on April 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Kinder Morgan Energy Partners beat expectations on revenues and beat slightly on earnings per share.

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

Gross margins contracted, operating margins shrank, net margins increased.

Revenue details
Kinder Morgan Energy Partners tallied revenue of $2.66 billion. The nine analysts polled by S&P Capital IQ wanted to see revenue of $2.46 billion on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $1.85 billion.

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 $0.66. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share. Non-GAAP EPS of $0.66 for Q1 were 8.2% higher than the prior-year quarter's $0.61 per share. (The prior-year quarter included -$0.80 per share in earnings from discontinued operations.) GAAP EPS were $2.08 for Q1 versus -$0.33 per share for the prior-year quarter.

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 49.6%, 250 basis points worse than the prior-year quarter. Operating margin was 29.5%, 110 basis points worse than the prior-year quarter. Net margin was 29.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.60 billion. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $10.22 billion. The average EPS estimate is $2.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,491 members out of 1,546 rating the stock outperform, and 55 members rating it underperform. Among 416 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 401 give Kinder Morgan Energy Partners a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan Energy Partners is hold, with an average price target of $90.36.

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