Martin Midstream Partners Earnings: Here’s Why the Stock is Falling Now

Martin Midstream Partners LP (NASDAQ:MMLP) 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 2.30%.

Martin Midstream Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 32% to $0.33 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 22.3% to $358.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Martin Midstream Partners LP reported adjusted EPS income of $0.33 per share. By that measure, the company missed the mean analyst estimate of $0.46. It missed the average revenue estimate of $369.77 million.

Quoting Management: Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said, “I am pleased with our Partnership’s second quarter performance. Historically, we see weaker cash flow levels during the second quarter due to seasonal impact. For the second quarter 2013, our distribution coverage ratio to the limited partners was 0.98 times which met our planned performance. For the six months ended June 30, 2013, our coverage to the limited partners was 1.18 times which allowed us to increase our quarterly distribution by $0.005 per common unit. The quarter once again exemplified the diverse nature of our cash flow generation. On balance, our Natural Gas Services and Sulfur Services segments out performed our forecasted plan. Conversely, our Terminalling & Storage segment experienced higher than normal operating expenses as we had unplanned repairs and maintenance at our Smackover refinery. Our Marine Transportation segment also experienced higher than anticipated repair and maintenance costs as we moved planned drydock expense previously scheduled for the second half of 2013 to the second quarter. As a result, all of 2013 regulatory drydockings have been completed.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 45.9% from $0.61 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 $0.3 to a profit $0.33. For the current year, the average estimate has moved up from a profit of $1.63 to a profit of $1.92 over the last ninety days.

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

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