Enterprises Products Partners L.P Earnings: Beats Estimates

Enterprises Products Partners L.P (NYSE:EPD) reported net income above Wall Street’s expectations for the fourth quarter. Enterprise Products Partners is a North American midstream energy company providing a range of services to producers and consumers of natural gas, natural gas liquids (NYSE:NGLS), crude oil, and certain petrochemicals.

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Enterprises Products Partners L.P Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Enterprises Products Partners L.P rose to $726 million (82 cents per share) vs. $289 million (33 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 20.9% to $11.59 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EPD beat the mean analyst estimate of 56 cents per share. It beat the average revenue estimate of $10.62 billion.

Quoting Management: “Enterprise had another record year in 2011,” stated Michael A. Creel, president and CEO of Enterprise. We benefited from production growth in the Rocky Mountains, Haynesville and Eagle Ford shale plays, and from increased demand for NGLs by the U.S. petrochemical industry and international customers. Our integrated system handled record or near record volumes of liquids and natural gas, leading to another year of record financial performance.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the third quarter, by 4 cents in the second quarter, and by 4 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 40.4% to $11.33 billion in the third quarter. The figure rose 48.7% in the second quarter from the year earlier and climbed 19.2% in the first quarter from the year-ago quarter.

Gross margins expanded last quarter, rising 2.5 percentage points to 8.1% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 52 cents a share to 55 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $2 per to share to $2.11.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com