It has been about a month since the last earnings report for Buckeye Partners L.P. (BPL). Shares have added about 12.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Buckeye Partners L.P. 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.
Buckeye Partners Q4 Earnings & Revenues Beat Estimates
Buckeye Partners, L.P. reported fourth-quarter 2018 earnings of 90 cents per unit, beating the Zacks Consensus Estimate of 69 cents by 30.24%. Moreover, the bottom line improved 5.9% year over year.
In the quarter under review, Buckeye Partners’ total revenues came in at $1,074.8 million, beating the Zacks Consensus Estimate of $720 million by 49.3%.
The top line also surpassed the year-ago revenues of $946.1 million by 13.6%. The improvement was primarily due to strong contribution from its Merchant Services segment.
In the fourth quarter, the partnership’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations decreased 19% from the prior-year level to $234.7 million.
Total costs and expenses were $581.1 million, down 24.8% from the year-earlier figure of $772.4 million. Operating income in the reported quarter was $493.7 million, up a whopping 184.2% from the year-ago period.
As of Dec 31, 2018, Buckeye Partners had cash and cash equivalents of $1.8 million compared with $2.2 million in the corresponding period of 2017.
Long-term debt as of Dec 31, 2018 was $4,536.7 million, lower than $4,658.3 million on Dec 31, 2017.
Total capital expenditure in the fourth quarter was $110.6 million, down 14.7% from $129.7 million a year ago.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
At this time, Buckeye Partners L.P. has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Buckeye Partners L.P. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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