NuStar Energy L.P. Earnings: Here’s Why Investors are Not Happy Now

NuStar Energy L.P. (NYSE:NS) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4%.

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NuStar Energy L.P. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 26.09% to $0.17 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Decreased 42.44% to $999.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NuStar Energy L.P. reported adjusted EPS income of $0.17 per share. By that measure, the company missed the mean analyst estimate of $0.43. It beat the average revenue estimate of $659.63 million.

Quoting Management: “Recent growth in the Eagle Ford Shale region and the sale of 50% of our Asphalt Operations in the third quarter of 2012 contributed to improved distributable cash flow results during the quarter,” said Curt Anastasio, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC. “We expect our 2013 distributable cash flow results to be higher than last year.”

Key Stats (on next page)…

Revenue increased 74.27% from $573.31 million in the previous quarter. EPS decreased 32% from $0.25 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 $0.56 to a profit $0.54. For the current year, the average estimate has moved up from a profit of $2.07 to a profit of $2.10 over the last ninety days.

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