Kinder Morgan Energy Partners
The 10-second takeaway
For the quarter ended June 30 (Q2), Kinder Morgan Energy Partners beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.
Gross margins dropped, operating margins dropped, net margins expanded.
Kinder Morgan Energy Partners notched revenue of $3.02 billion. The nine analysts polled by S&P Capital IQ predicted net sales of $2.68 billion on the same basis. GAAP reported sales were 55% higher than the prior-year quarter's $1.95 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 $0.49. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. Non-GAAP EPS of $0.49 for Q2 were 32% higher than the prior-year quarter's $0.37 per share. (The prior-year quarter included -$0.82 per share in earnings from discontinued operations.) GAAP EPS were $2.63 for Q2 against -$0.53 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 38.8%, much worse than the prior-year quarter. Operating margin was 19.9%, 590 basis points worse than the prior-year quarter. Net margin was 33.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.69 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $10.83 billion. The average EPS estimate is $2.67.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,507 members out of 1,559 rating the stock outperform, and 52 members rating it underperform. Among 396 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 383 give Kinder Morgan Energy Partners a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan Energy Partners is outperform, with an average price target of $91.81.
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