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Kinder Morgan Inc (KMI): How’d It Do?

Kinder Morgan Inc (NYSE:KMI) reported earnings on April 17. Here are the numbers you need to know.

Kinder Morgan Management, LLC (NYSE:KMR)The 10-second takeaway
For the quarter ended March 31 (Q1), Kinder Morgan beat expectations on revenues and missed estimates on earnings per share.

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

Margins grew across the board.

Revenue details
Kinder Morgan Inc (NYSE:KMI) reported revenue of $3.06 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $2.92 billion on the same basis. GAAP reported sales were 65% higher than the prior-year quarter’s $1.86 billion.

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 $0.28. The eight earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS of $0.28 for Q1 were much higher than the prior-year quarter’s $0.03 per share. (The prior-year quarter included -$0.53 per share in earnings from discontinued operations.)

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 54.6%, 230 basis points better than the prior-year quarter. Operating margin was 33.4%, 560 basis points better than the prior-year quarter. Net margin was 9.5%, 840 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter’s average estimate for revenue is $3.06 billion. On the bottom line, the average EPS estimate is $0.34.

Next year’s average estimate for revenue is $12.47 billion. The average EPS estimate is $1.33.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 485 members out of 489 rating the stock outperform, and four members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 142 give Kinder Morgan Inc (NYSE:KMI) a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kinder Morgan is outperform, with an average price target of $41.17.

The article Kinder Morgan Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com and is written by Seth Jayson.

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. The Motley Fool recommends Kinder Morgan. The Motley Fool owns shares of Kinder Morgan Inc (NYSE:KMI).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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