- Enterprise Products Partners (NYSE:EPD) sold off for the second day, -2%, after a huge miss on revenues yesterday ($7.09B, more than 26% off a consensus expectation of $9.7B).
- Revenues fell by 43%, and analysts had baked in a 20% revenue decline. But costs and expenses fell 45% as well, to $6.4B.
- Shares fell 1.9% yesterday after earnings, bringing the two-day decline to 3.8%.
- Stifel Nicolaus cut its price target on the shares to $34, from $38. Shares closed today at $28.33. But Wunderlich's Jeff Birnbaum said the results were "satisfying," maintaining a Buy rating on one of his top picks coming into earnings season.
- "While not huge growth, it comes despite a tough macro backdrop, particularly for natural gas gathering and processing," he writes. "With [more than] $8.3B in new projects set to enter service by YE17, we believe it can continue its 6% distribution growth and 1.3x distribution coverage with potential upside should commodities rebound over time or additional M&A opportunities materialize."