The 10-second takeaway
For the quarter ended March 31 (Q1), Genesis Energy beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded.
Margins shrank across the board.
Genesis Energy booked revenue of $1.15 billion. The seven analysts polled by S&P Capital IQ looked for a top line of $1.13 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $932.9 million.
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 nine earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.28 for Q1 were 3.7% higher than the prior-year quarter's $0.27 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 5.0%, 50 basis points worse than the prior-year quarter. Operating margin was 2.6%, 20 basis points worse than the prior-year quarter. Net margin was 2.0%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.57 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $5.46 billion. The average EPS estimate is $1.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 258 members out of 267 rating the stock outperform, and nine members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Genesis Energy 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 Genesis Energy is outperform, with an average price target of $47.27.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Genesis Energy. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Genesis Energy 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 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.
More from The Motley Fool
3 Most Wildly Overvalued High-Yield Dividend Stocks
Thinking about investing in Genesis Energy, Kronos Worldwide, or Midcoast Energy Partners? You may want to reconsider.
Why Investors Should Avoid Buckeye Partners and Own These 2 MLPs Instead
Pipeline partnerships are a popular way for income investors to earn both high-yield and capital gains to boot. This article explains why investors should consider avoiding Buckeye Partners in lieu of better alternatives: Markwest Energy Partners and Genesis Energy.
What Genesis Energy's Earnings Headlines Didn't Tell You
Don't just count the cash, time it.