Holly Energy Partners, L.P. (HEP)

[Wildbilly]

Holly Energy Partners L.P Increases Sales but Misses Estimates on Earnings


Holly Energy Partners L.P (NYSE: HEP  ) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Holly Energy Partners L.P met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share shrank significantly.

Gross margins contracted, operating margins grew, net margins increased.

Revenue details
Holly Energy Partners L.P tallied revenue of $75.3 million. The five analysts polled by S&P Capital IQ expected net sales of $75.7 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $71.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The five earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS of $0.23 for Q2 were 28% lower than the prior-year quarter's $0.32 per share.


Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.4%, 10 basis points worse than the prior-year quarter. Operating margin was 43.2%, 250 basis points better than the prior-year quarter. Net margin was 26.8%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $80.0 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $314.6 million. The average EPS estimate is $1.24.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 95 members out of 109 rating the stock outperform, and 14 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Holly Energy Partners L.P a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Holly Energy Partners L.P is hold, with an average price target of $35.40.

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