It has been more than a month since the last earnings report for Magellan Midstream Partners L.P. (MMP - Free Report) . Shares have lost about 2.3% 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 of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Second-Quarter 2017 Results
Magellan Midstream reported adjusted earnings per unit came of $0.92, better than the Zacks Consensus Estimate of $0.89. Solid contribution from all operating segments led to the outperformance.
Magellan Midstream reported revenues of $619.4 million, above the Zacks Consensus Estimate of $561 million.
Operating margin from the Refined Products segment was $214.4 million compared with $177.3 million in the year-ago quarter.
Magellan Midstream’s Crude Oil unit generated $105.8 million of operating margin in the quarter compared to $96.9 million for the same period in 2016.
For the Marine Storage division, operating margin was $32.2 million, 11% higher than the $28.9 million earned in the year-ago period.
Magellan Midstream reported that its distributable cash flow for second-quarter 2017 came in at $250.4 million, up 13% from the year-ago quarter.
Magellan Midstream continues to project at least 8% annual distribution growth for 2017. Distributable cash flow projection for this year is approximately $1.02 billion.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.
Magellan Midstream Partners L.P. Price and Consensus
At this time, Magellan Midstream's stock has an average Growth Score of C, however its Momentum is doing a bit better with a B. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.