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Will These Numbers from PAA Natural Gas Storage Be Good Enough for You?

By Seth Jayson – Updated Apr 10, 2017 at 1:24PM

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Checking expectations

PAA Natural Gas Storage (NYSE: PNG) is expected to report Q1 earnings on May 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict PAA Natural Gas Storage's revenues will wane -31.7% and EPS will compress 0.0%.

The average estimate for revenue is $74.2 million. On the bottom line, the average EPS estimate is $0.23.

Revenue details
Last quarter, PAA Natural Gas Storage booked revenue of $112.7 million. GAAP reported sales were 29% lower than the prior-year quarter's $158.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.31. GAAP EPS of $0.30 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 34.9%, much better than the prior-year quarter. Operating margin was 22.0%, 720 basis points better than the prior-year quarter. Net margin was 19.9%, 600 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $318.4 million. The average EPS estimate is $0.94.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 66 members out of 66 rating the stock outperform, and members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give PAA Natural Gas Storage 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 PAA Natural Gas Storage is hold, with an average price target of $19.72.

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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. 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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