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The Gory Details on Breitburn Energy Partners's Double Miss

By Seth Jayson – Updated Apr 10, 2017 at 1:28PM

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Just the facts, Fool.

Breitburn Energy Partners (Nasdaq: BBEP) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Breitburn Energy Partners missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share dropped to a loss. GAAP loss per share contracted.

Gross margins shrank, operating margins expanded, net margins grew.

Revenue details
Breitburn Energy Partners booked revenue of $120.4 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $130.0 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 details
EPS came in at -$0.07. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. Non-GAAP EPS were -$0.07 for Q1 compared to $0.06 per share for the prior-year quarter. GAAP EPS were -$0.38 for Q1 versus -$0.76 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 46.2%, 830 basis points worse than the prior-year quarter. Operating margin was -18.4%, much better than the prior-year quarter. Net margin was -37.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $134.6 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $563.4 million. The average EPS estimate is $0.77.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 514 members out of 530 rating the stock outperform, and 16 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give Breitburn Energy Partners a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Breitburn Energy Partners is outperform, with an average price target of $22.54.

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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 BreitBurn Energy Partners L.P. 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.

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