NuStar Energy Earnings: Here’s Why Investors are Buying Shares Now

NuStar Energy L.P. (NYSE:NS) 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 1.92%.

NuStar Energy L.P. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 366.67% to $0.28 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Decreased 52.46% to $904.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NuStar Energy L.P. reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.25. It missed the average revenue estimate of $924.53 million.

Quoting Management: “NuStar’s second quarter results improved compared to the same quarter last year primarily as a result of the company’s recent growth in the Eagle Ford Shale region and the strategic redirection we undertook in 2012 and early 2013 to minimize our exposure to margin-based operations,” said Curt Anastasio, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC.

Key Stats (on next page)…

Revenue decreased 9.55% from $999.71 million in the previous quarter. EPS increased 64.71% 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 $0.60 to a profit $0.50. For the current year, the average estimate has moved down from a profit of $2.06 to a profit of $1.55 over the last ninety days.

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