It has been about a month since the last earnings report for Buckeye Partners L.P. . Shares have lost about 7.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Buckeye Misses Q4 Earnings, Beats Revenue Estimates
Buckeye Partners, L.P. BPL reported fourth-quarter 2016 earnings of $0.78 per unit, lagging the Zacks Consensus Estimate of $1.05 by 25.7%. Further, the reported figure was lower than the year-ago of $1.03 by 24.3%.
Total Revenue
In the quarter under review, Buckeye Partners' total revenue came in at $924.1 million, beating the Zacks Consensus Estimate of $810 million by 14.1%. Quarterly revenues were, up 9.9% year over year owing to higher contribution from the Product Sales and Transportation, storage and other services segments.
Total revenues in 2016 were $3.25 billion, 2.8% higher than the Zacks Consensus Estimate of $3.16 billion. However, the revenues were down 5.8% year over year.
Operational Highlights
In the fourth quarter, the partnership's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 4.3% year over year to $255.1 million.
Total costs and expenses were $767.1 million, up 15.8%. The partnership's cost went up due to higher costs of product sales and higher operating expenses.
The partnership's operating income was down 11.7% to nearly $156.9 million from $177.7 million a year ago.
Interest and debt expenses were up 14.7 % to $50.9 million.
Financial Screening
As of Dec 31, 2016, Buckeye Partners had cash and cash equivalents of $640.4 million, compared with $4.9 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $4,217.7 million, up from $3,732.8 million as of Dec 31, 2015.
Total capital expenditure in fourth-quarter 2016 was $106.3 million, down 34.2% from $161.4 million a year ago.
Cash Distribution Update
The partnership announced fourth-quarter 2016 cash distribution of $1.2375 per limited partner unit, up 4.2% from the prior-year payout of $1.1875. The revised dividend will be paid on Feb 28, 2017 to unit holders of record as of Feb 21.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. While looking back an additional 30 days, we can see even more downward momentum. There have been three downward revisions in the last two months. In the past month, the consensus estimate has shifted 8.99% downward due to these changes.
VGM Scores
Currently, Buckeye Partners' stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Buckeye (BPL) Down 7.2% Since the Last Earnings Report?
It has been about a month since the last earnings report for Buckeye Partners L.P. . Shares have lost about 7.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Buckeye Misses Q4 Earnings, Beats Revenue Estimates
Buckeye Partners, L.P. BPL reported fourth-quarter 2016 earnings of $0.78 per unit, lagging the Zacks Consensus Estimate of $1.05 by 25.7%. Further, the reported figure was lower than the year-ago of $1.03 by 24.3%.
Total Revenue
In the quarter under review, Buckeye Partners' total revenue came in at $924.1 million, beating the Zacks Consensus Estimate of $810 million by 14.1%. Quarterly revenues were, up 9.9% year over year owing to higher contribution from the Product Sales and Transportation, storage and other services segments.
Total revenues in 2016 were $3.25 billion, 2.8% higher than the Zacks Consensus Estimate of $3.16 billion. However, the revenues were down 5.8% year over year.
Operational Highlights
In the fourth quarter, the partnership's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 4.3% year over year to $255.1 million.
Total costs and expenses were $767.1 million, up 15.8%. The partnership's cost went up due to higher costs of product sales and higher operating expenses.
The partnership's operating income was down 11.7% to nearly $156.9 million from $177.7 million a year ago.
Interest and debt expenses were up 14.7 % to $50.9 million.
Financial Screening
As of Dec 31, 2016, Buckeye Partners had cash and cash equivalents of $640.4 million, compared with $4.9 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $4,217.7 million, up from $3,732.8 million as of Dec 31, 2015.
Total capital expenditure in fourth-quarter 2016 was $106.3 million, down 34.2% from $161.4 million a year ago.
Cash Distribution Update
The partnership announced fourth-quarter 2016 cash distribution of $1.2375 per limited partner unit, up 4.2% from the prior-year payout of $1.1875. The revised dividend will be paid on Feb 28, 2017 to unit holders of record as of Feb 21.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. While looking back an additional 30 days, we can see even more downward momentum. There have been three downward revisions in the last two months. In the past month, the consensus estimate has shifted 8.99% downward due to these changes.
Buckeye Partners L.P. Price and Consensus
Buckeye Partners L.P. Price and Consensus | Buckeye Partners L.P. Quote
VGM Scores
Currently, Buckeye Partners' stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.