Spectra Energy Partners Earnings: Here’s Why Investors Like These Results

Spectra Energy Partners, LP (NYSE:SEP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.59%.

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Spectra Energy Partners, LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.25% to $0.45 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Decreased 1.62% to $60.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Spectra Energy Partners, LP reported adjusted EPS income of $0.45 per share. By that measure, the company beat the mean analyst estimate of $0.42. It beat the average revenue estimate of $60.33 million.

Quoting Management: “Spectra Energy Partners continues to deliver solid financial results, and we’re proud to have been able to recently announce our 22nd consecutive quarterly distribution increase,” said Julie Dill, president and chief executive officer. “We are also excited about the pending drop-down of 50-percent of the Express-Platte crude oil pipeline system from our general partner, Spectra Energy. This is the first step in a series of fee-based asset drop-downs we expect from our general partner over the next couple of years, totaling more than $2 billion. These drop-downs will provide us with an expanded growth platform, which will allow us to continue delivering increasing value to our investors.”

Key Stats (on next page)…

Revenue increased 3.22% from $59 million in the previous quarter. EPS increased 12.5% from $0.40 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 $0.42 to a profit $0.39. For the current year, the average estimate has moved down from a profit of $1.68 to a profit of $1.66 over the last ninety days.

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