El Paso Pipeline Partners, L.P. (NYSE:EPB) 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 0%.
El Paso Pipeline Partners, L.P. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 11.11% to $0.6 in the quarter versus EPS of $0.54 in the year-earlier quarter.
Revenue: Rose 6.34% to $386 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: El Paso Pipeline Partners, L.P. reported adjusted EPS income of $0.6 per share. By that measure, the company beat the mean analyst estimate of $0.56. It missed the average revenue estimate of $401.35 million.
Quoting Management: Chairman and CEO Richard D. Kinder said, EPB had a solid first quarter with total asset earnings before DD&A and certain items of $317 million, up 12 percent from $283 million for the same period last year. Results were led by contributions from the May 24, 2012, dropdown from its general partner of the remaining 14 percent of Colorado Interstate Gas and all of Cheyenne Plains Pipeline, along with good results from Southern Natural Gas (SNG) attributable to a completed expansion project. Deliveries to gas-fired power generation were up 4 percent on SNG in the first quarter versus the same period a year ago, which also had experienced very strong growth in natural gas demand for power generation.
Looking ahead, growth at EPB is expected to be driven by our stable, regulated natural gas pipeline and storage assets, Kinder said. We are particularly excited about the significant LNG export opportunities we are pursuing, including our recent announcement with a subsidiary of Shell to build a natural gas liquefaction plant at our existing LNG terminal on Elba Island (see other news section).
Key Stats (on next page)…
Revenue decreased 1.03% from $390 million in the previous quarter. EPS decreased 3.23% from $0.62 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 $0.49 to a profit $0.46. For the current year, the average estimate has moved down from a profit of $2.15 to a profit of $2.06 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)