Photo Credit.

A company’s revenue can be very telling of the state of that company. Additionally, often investors will base their investment choices on a company’s revenue. How do you tell if their revenue is good? Kinder Morgan is a good stock to look at to understand these things. Seth Jayson explains why Kinder Morgan’s revenues aren’t are nice as they seem.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kinder Morgan Energy Partners whiffed on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share expanded significantly.

Margins increased across the board.

Revenue details
Kinder Morgan Energy Partners reported revenue of $2.0 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $2.4 billion. Sales were 4.0% higher than the prior-year quarter’s $1.9 billion

Margin details
For the quarter, gross margin was 45.2%, 200 basis points better than the prior-year quarter. Operating margin was 26.1%, 160 basis points better than the prior-year quarter. Net margin was 23.7%, 250 basis points better than the prior-year quarter.

The numbers always speak for themselves. In this case, they most definitely do! Use Kinder Morgan as a lesson learned, and probably reconsider investing in it.

Quotes taken from report by Seth Jayson, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.