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 74.6% to $0.16 in the quarter versus EPS of $0.63 in the year-earlier quarter.
Revenue: Decreased 15.05% to $1.4 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Targa Resources Partners LP reported adjusted EPS income of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.18. It missed the average revenue estimate of $1.68 billion.
Quoting Management: “Our first quarter financial results demonstrate the benefits of the increasing scale, diversity and fee-based nature of our businesses. Despite the significant reduction in natural gas liquids prices compared to the first quarter of last year, the effect on our financial results was mitigated by record quarterly margin from our Logistics and Marketing division,” said Joe Bob Perkins, Chief Executive Officer of the general partner of the Partnership and of Targa Resources Corp. “We are currently commissioning our 100 MBbl/d Cedar Bayou Fractionator Train 4 expansion in Mont Belvieu, Texas. This project is part of the $1.7 billion in organic growth investments expected to be placed in service by the end of 2014, $1.2 billion of which is expected to be placed in service this year. We expect these primarily fee-based investments to add scale, diversity and margin that will support continued distribution growth.”
Key Stats (on next page)…
Revenue decreased 8.45% from $1.53 billion in the previous quarter. EPS decreased 40.74% from $0.27 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 $0.29 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $1.32 to a profit of $1.14 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)