Kinder Morgan Energy Partners LP Fourth Quarter Earnings Sneak Peek

Kinder Morgan Energy Partners LP (NYSE:KMP) will unveil its latest earnings tomorrow, Wednesday, January 16, 2013.

Kinder Morgan Energy Partners LP Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 67 cents per share, a rise of 21.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 28% versus last year to $2.24.

Past Earnings Performance: Last quarter, the company showed profit of 57 cents per share in the third quarter to fall in line with expectations, the company beat estimates by 10 cents in the second quarter. This comes after the company failed to meet analysts’ expectations in the previous two.

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A Look Back: In the third quarter, profit rose 76.7% to $379 million (0 cents a share) from $214.5 million (-25 cents a share) the year earlier, meeting analyst expectations. Revenue rose 6.3% to $2.33 billion from $2.2 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 22.5% in revenue from the year-earlier quarter to $2.45 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.83 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 1.48 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 83.9% to $4.56 billion while assets rose 2.5% to $3.77 billion.

Key Stats:

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 7.3% in the first quarter and 8.3% in the second quarter before climbing in the third quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the first quarter and second quarter, profit rose in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 14 analysts surveyed giving that rating.

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Here’s how Kinder Morgan traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

KMP

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