The 10-second takeaway
For the quarter ended March 31 (Q1), SemGroup whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Gross margins dropped, operating margins grew, net margins expanded.
SemGroup chalked up revenue of $287.7 million. The two analysts polled by S&P Capital IQ expected to see revenue of $334.2 million on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $317.7 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 $0.84. The three earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share. Non-GAAP EPS were $0.84 for Q1 compared to -$0.03 per share for the prior-year quarter. GAAP EPS were $1.03 for Q1 versus -$0.03 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 12.0%, much worse than the prior-year quarter. Operating margin was 1.7%, 130 basis points better than the prior-year quarter. Net margin was 15.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $343.7 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $1.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 30 members out of 35 rating the stock outperform, and five members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give SemGroup 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 SemGroup is buy, with an average price target of $60.00.
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