Magellan Midstream Partners Earnings: Here’s Why Investors are Happy Now

Magellan Midstream Partners LP (NYSE:MMP) 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. Shares are up 1.57%.

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Magellan Midstream Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.51% to $0.51 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Decreased 12.38% to $432.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Magellan Midstream Partners LP reported adjusted EPS income of $0.51 per share. By that measure, the company beat the mean analyst estimate of $0.48. It missed the average revenue estimate of $515.03 million.

Quoting Management: “Magellan started the year 2013 with solid results, exceeding our initial expectations for the first quarter and generating positive momentum for the remainder of the year,” said Michael Mears, chief executive officer. “Further, we continue to make significant strides to develop Magellan’s growing crude oil transportation and storage profile. So far this year, we have announced plans to add crude oil capabilities to our Galena Park, Texas marine terminal and during mid-April, reached our milestone to begin crude oil deliveries into Houston via our Longhorn pipeline, currently at partial capacity but with full capabilities still expected later this year. Each of these strategic steps builds upon the growth platform we have created for Magellan’s future.

Key Stats (on next page)…

Revenue decreased 14.07% from $503.2 million in the previous quarter. EPS decreased 26.09% from $0.69 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 $0.57 to a profit $0.56. For the current year, the average estimate is a profit of $2.21, which is the same with that ninety days ago.

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

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