Holly Energy Partners L.P Earnings: Here’s Why Investors are Not Excited Now

Holly Energy Partners L.P (NYSE:HEP) 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. Shares are down 0.38%.

Holly Energy Partners L.P Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 28.13% to $0.23 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Rose 18.2% to $75.28 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Holly Energy Partners L.P reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.3. It missed the average revenue estimate of $75.69 million.

Quoting Management: Commenting on the second quarter of 2013, Matt Clifton, Chairman of the Board and Chief Executive Officer stated, “We are pleased with the improvement in distributable cash flow and EBITDA compared to the second quarter of 2012 and the first quarter of 2013. As expected, pipeline shipments improved this quarter following the major maintenance turnarounds at both HollyFrontier’s Navajo refinery and Alon’s Big Spring refinery in the first quarter of 2013. Looking forward, positive industry fundamentals combined with HEP’s strong asset base and our planned capital projects should drive continued growth in our distributable cash flow.”

Key Stats (on next page)…

Revenue increased 1.32% from $74.3 million in the previous quarter. EPS increased 35.29% from $0.17 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 $0.39 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $1.42 to a profit of $1.25 over the last ninety days.

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