Enterprise Products Partners Earnings: Everything You Must Know Now

Enterprise Products Partners LP (NYSE:EPD) delivered a profit and missed 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.

Enterprise Products Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.56% to $0.65 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Rose 13.88% to $11.15 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Enterprise Products Partners LP reported adjusted EPS income of $0.65 per share. By that measure, the company missed the mean analyst estimate of $0.68. It missed the average revenue estimate of $11.33 billion.

Quoting Management: “Enterprise reported continued strong performance in the second quarter of 2013 with $1.1 billion of gross operating margin, 11 percent higher than the second quarter of last year, with four of our five business segments reporting increases,” said Michael A. Creel, Chief Executive Officer of Enterprise’s general partner. “This increase was primarily attributable to higher volumes in our fee-based businesses and contributions from new assets placed into service since the second quarter of last year, which more than offset lower gross operating margin from our natural gas processing business due to lower processing margins. In the second quarter of 2013, volumes transported by our NGL, crude oil, refined products and petrochemical pipelines increased by 813,000 barrels per day, or 20 percent, to a record 4.9 million barrels per day. Our crude oil pipelines transported a record 1.5 million barrels per day in the second quarter of 2013, a 446,000 barrel per day, or 44 percent, increase compared to the same quarter last year, while our NGL pipelines transported a record 2.7 million barrels per day, a 304,000 barrels per day, or 12 percent, increase compared to the second quarter of 2012. These increases in pipeline volumes were primarily driven by NGL and crude oil production growth from the Eagle Ford shale development in South Texas, the expansion of our LPG export terminal and the completion of the Seaway pipeline reversal.”

Key Stats (on next page)…

Revenue decreased 2.06% from $11.38 billion in the previous quarter. EPS decreased 15.58% from $0.77 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.70 to a profit $0.71. For the current year, the average estimate has moved up from a profit of $2.85 to a profit of $2.92 over the last ninety days.

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