Enterprise Products Partners LP (NYSE:EPD) 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.
Enterprise Products Partners LP Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 5.48% to $0.77 in the quarter versus EPS of $0.73 in the year-earlier quarter.
Revenue: Rose 1.14% to $11.38 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Enterprise Products Partners LP reported adjusted EPS income of $0.77 per share. By that measure, the company beat the mean analyst estimate of $0.65. It missed the average revenue estimate of $11.61 billion.
Quoting Management: “Enterprise reported another strong quarter with a record $1.2 billion in gross operating margin,” said Michael A. Creel, Chief Executive Officer of Enterprise. “The composition of the partnership’s earnings for the first quarter of 2013 continued the trend that began during the second half of 2012. Investments in our fee-based businesses are generating increases in gross operating margin that more than offset the weakness in our natural gas processing and related NGL marketing activities due to weaker processing margins, reduced drilling in certain areas and a decrease in ethane extracted at processing plants. Our onshore crude oil segment had a record quarter reporting $236 million of gross operating margin attributable to the partnership’s investments to build our Eagle Ford crude oil pipeline system and the reversal of the Seaway crude oil pipeline as well as the growth in our marketing activities related to these assets. Our operations generated distributable cash flow of $935 million in the first quarter of 2013, a 32 percent increase from comparable distributable cash flow in the first quarter of 2012 when excluding the proceeds from asset sales and insurance recoveries and losses from interest rate hedges for both periods. This strong performance allowed us to increase our cash distribution to partners by 6.8 percent over the distribution with respect to the first quarter of last year while retaining $303 million to reinvest in our growth capital projects.”
Key Stats (on next page)…
Revenue increased 2.79% from $11.07 billion in the previous quarter. EPS increased 13.24% from $0.68 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 $0.64 to a profit $0.66. For the current year, the average estimate has moved up from a profit of $2.66 to a profit of $2.73 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)