An Earnings Miss: Pipeline operator Magellan Midstream Partners L.P. reported adjusted earnings per unit of $1.03, lower than the Zacks Consensus Estimate of $1.16. Weak contribution from the Crude Oil operating segment led to the miss.
Estimate Revision Trend: Investors should note that the Zacks Consensus Estimate for the quarter has been unchanged in the last seven days.
Revenue Outperformance: Magellan Midstream reported revenues of $865.7 million, above the Zacks Consensus Estimate of $710 million.
Zacks Rank & Surprise History: Currently, Magellan Midstream carries a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Coming to earnings surprise history, the company has a good record: its beaten estimates in three of the last four quarters.
Key Stats: Operating margin from the Refined Products segment was $349.3 million compared with $216.2 million in the year-ago quarter.
Magellan Midstream’s Crude Oil unit generated $129.8 million of operating margin in the quarter compared to $141.8 million for the same period in 2017.
For the Marine Storage division, operating margin was $30.7 million, 17.5% higher than the $26.1 million earned in the year-ago period.
Magellan Midstream reported that its distributable cash flow (DCF) for fourth-quarter 2018 came in at $302.4 million, down 1.9% from the year-ago quarter.
2019 Guidance: Management expects to generate distributable cash flows of approximately $1.14 billion for the full year and is targeting annual distribution growth of 5%. Magellan guided towards first-quarter and full-year earnings per unit of 90 cents and $3.80, respectively.
The partnership plans to spend approximately $1.3 billion on expansion projects in 2019, with expenditures of $400 million thereafter required to complete these projects. Additionally, the partnership continues to look out for more than $500 million of potential organic growth projects in the earlier stages of development.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
An Earnings Miss: Pipeline operator Magellan Midstream Partners L.P. reported adjusted earnings per unit of $1.03, lower than the Zacks Consensus Estimate of $1.16. Weak contribution from the Crude Oil operating segment led to the miss.
Estimate Revision Trend: Investors should note that the Zacks Consensus Estimate for the quarter has been unchanged in the last seven days.
Revenue Outperformance: Magellan Midstream reported revenues of $865.7 million, above the Zacks Consensus Estimate of $710 million.
Zacks Rank & Surprise History: Currently, Magellan Midstream carries a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Coming to earnings surprise history, the company has a good record: its beaten estimates in three of the last four quarters.
Key Stats: Operating margin from the Refined Products segment was $349.3 million compared with $216.2 million in the year-ago quarter.
Magellan Midstream’s Crude Oil unit generated $129.8 million of operating margin in the quarter compared to $141.8 million for the same period in 2017.
For the Marine Storage division, operating margin was $30.7 million, 17.5% higher than the $26.1 million earned in the year-ago period.
Magellan Midstream reported that its distributable cash flow (DCF) for fourth-quarter 2018 came in at $302.4 million, down 1.9% from the year-ago quarter.
2019 Guidance: Management expects to generate distributable cash flows of approximately $1.14 billion for the full year and is targeting annual distribution growth of 5%. Magellan guided towards first-quarter and full-year earnings per unit of 90 cents and $3.80, respectively.
The partnership plans to spend approximately $1.3 billion on expansion projects in 2019, with expenditures of $400 million thereafter required to complete these projects. Additionally, the partnership continues to look out for more than $500 million of potential organic growth projects in the earlier stages of development.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>