Kinder Morgan Energy Partners
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.
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 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.
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.)
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.
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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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 has no position in any of the stocks mentioned. 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.