Access Midstream Partners Earnings: Here’s Why Investors Don’t Like These Results

Access Midstream Partners LP (NYSE:ACMP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.47%.

Access Midstream Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.82% to $0.31 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Rose 65.54% to $247.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.29. It missed the average revenue estimate of $248.35 million.

Quoting Management: J. Mike Stice, Access Midstream Partners’ Chief Executive Officer, commented, “Our strong financial performance in the second quarter is the result of tremendous execution by our operations teams. We recently set a daily throughput record in the Marcellus Shale with the Marcellus North assets generating more than two billion cubic feet per day of gross throughput. In addition, our team in the Eagle Ford Shale connected over 100 new receipt meters to our gathering systems in the second quarter. These achievements and the achievements of the teams in our other operating regions are contributing to industry leading growth for Access Midstream.”

Key Stats (on next page)…

Revenue increased 4.32% from $236.96 million in the previous quarter. EPS decreased 27.91% from $0.43 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.38 to a profit $0.33. For the current year, the average estimate has moved down from a profit of $1.49 to a profit of $1.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)