Targa Resources Partners LP (NYSE:NGLS) 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.
Targa Resources Partners LP Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 97.14% to $0.01 in the quarter versus EPS of $0.35 in the year-earlier quarter.
Revenue: Rose 9.34% to $1.44 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Targa Resources Partners LP reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.16. It missed the average revenue estimate of $1.64 billion.
Quoting Management: “We saw higher volumes across all of our Field Gathering & Processing systems as a result of the continued increase in producer activity in the Permian Basin, North Texas and the Bakken. The combination of higher volumes, increased margin from our downstream segment and strong fee-based margin contributions resulted in an increase in Adjusted EBITDA compared to the second quarter last year, despite significantly lower natural gas liquids prices in the quarter,” said Joe Bob Perkins, Chief Executive Officer of the general partner of the Partnership and of Targa Resources Corp. “We are excited about adding even more scale, diversity and fee-based margin to our business during the third and fourth quarters as we bring on contributions from our 100 MBbl/d Cedar Bayou Fractionator Train 4 expansion and our export expansion at Galena Park. These projects are part of the $1.7 billion in organic growth investments that will support continued distribution growth even in a challenging natural gas liquids price environment.”
Key Stats (on next page)…
Revenue increased 3.13% from $1.4 billion in the previous quarter. EPS decreased 93.75% from $0.16 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 $0.33 to a profit $0.32. For the current year, the average estimate has moved down from a profit of $1.13 to a profit of $1.02 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)