Boardwalk Pipeline Partners Earnings: Here’s Why the Stock is Bouncing Back Now

Boardwalk Pipeline Partners, LP (NYSE:BWP) delivered a profit and met Wall Street’s expectations, AND 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 up 0.36%.

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Boardwalk Pipeline Partners, LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40.74% to $0.38 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 9.7% to $325.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Boardwalk Pipeline Partners, LP reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.38. It missed the average revenue estimate of $341.74 million.

Interesting Driver: Operating revenues for the fourth quarter of 2012 increased $24.7 million compared to the fourth quarter of 2011, driven by $25.6 million of revenues contributed from the Partnership’s recent acquisitions, Boardwalk Louisiana Midstream, LLC (Louisiana Midstream) and Boardwalk HP Storage Company, LLC (HP Storage). Operating expenses increased $6.2 million, primarily as a result of the acquisitions of Louisiana Midstream and HP Storage.

Key Stats (on next page)…

Revenue increased 20.36% from $270.6 million in the previous quarter. EPS increased 40.74% from $0.27 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 $0.41 to a profit $0.4. For the current year, the average estimate has moved down from a profit of $1.38 to a profit of $1.31 over the last ninety days.

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