The 10-second takeaway
For the quarter ended March 31 (Q1), Kinder Morgan beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Kinder Morgan reported revenue of $3.06 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $2.92 billion on the same basis. GAAP reported sales were 65% higher than the prior-year quarter's $1.86 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 $0.28. The eight earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS of $0.28 for Q1 were much higher than the prior-year quarter's $0.03 per share. (The prior-year quarter included -$0.53 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.6%, 230 basis points better than the prior-year quarter. Operating margin was 33.4%, 560 basis points better than the prior-year quarter. Net margin was 9.5%, 840 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.06 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $12.47 billion. The average EPS estimate is $1.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 485 members out of 489 rating the stock outperform, and four members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 142 give Kinder Morgan 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 Kinder Morgan is outperform, with an average price target of $41.17.
Is Kinder Morgan the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Kinder Morgan to My Watchlist.
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 Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. 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.