El Paso Pipeline Partners Misses Where It Counts

El Paso Pipeline Partners (NYS: EPB) reported earnings on Wednesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), El Paso Pipeline Partners met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew.


Margins increased across the board.

Revenue details
El Paso Pipeline Partners logged revenue of $367 million. The six analysts polled by S&P Capital IQ predicted sales of $365.5 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $358 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.63 for Q2 were 6.8% higher than the prior-year quarter's $0.59 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 72.8%, 190 basis points better than the prior-year quarter. Operating margin was 55.0%, 110 basis points better than the prior-year quarter. Net margin was 35.4%, 300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $377.1 million. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $2.11.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 267 members rating the stock outperform and four members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give El Paso Pipeline Partners a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on El Paso Pipeline Partners is outperform, with an average price target of $37.29.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of El Paso Pipeline Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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