It has been about a month since the last earnings report for Magellan Midstream Partners, L.P. (MMP - Free Report) . Shares have added about 5.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is MMP due for a pullback? 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.
First-Quarter 2018 Results
Magellan Midstream reported adjusted earnings per unit of $1.05, higher than the Zacks Consensus Estimate of $1.01. Strong contribution from the Crude Oil operating segment led to the beat.
Magellan Midstream reported revenues of $678.8 million, above the Zacks Consensus Estimate of $647.7 million.
Operating margin from the Refined Products segment was $211.4 million compared with $221.3 million in the year-ago quarter.
Magellan Midstream’s Crude Oil unit generated $127.7 million of operating margin in the quarter compared to $101.9 million for the same period in 2017.
For the Marine Storage division, operating margin was $30 million, 13.1% lower than the $34.5 million earned in the year-ago period.
Magellan Midstream reported that its distributable cash flow (DCF) for first-quarter 2017 came in at $258.9 million, up 13.8% from the year-ago quarter.
Management expects to generate record distributable cash flows of approximately $1,080 million for the full year and is sticking to its targeted annual distribution growth of 8%. Magellan guided towards second-quarter and full-year earnings per unit of 95 cents and $4.10, respectively.
The partnership plans to spend approximately $950 million on expansion projects in 2018, with expenditures of $425 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower.
At this time, MMP has an average Growth Score of C. Its Momentum is doing a bit better with a B. However, 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.
MMP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.