Sunoco Logistics Partners L.P.
), a master limited partnership (MLP), is scheduled to release
its third-quarter 2012 earnings after the markets close on
November 7, 2012.
Second Quarter Recap
The partnership announced a jump in its second quarter 2012
profits, driven by strong demand for its crude oil business.
The partnership's diluted earnings per unit ("EPU") came in at
$1.28, significantly ahead of the Zacks Consensus Estimate of 72
cents and the year-ago period profit of 80 cents. Revenues of
$3,318.0 million were up 36.7% from the second quarter of 2011
and also beat the Zacks Consensus Estimate by 3.9%.
Importantly, the partnership raised its quarterly distribution by
9.9% sequentially and 16.0% year over year to 47 cents per unit
or $1.88 per unit annualized, representing the twenty-ninth
consecutive quarterly distribution increase. Distributable cash
flow increased 56.6% year over year to a record $166.0 million.
Estimate Revisions Trend
In the last 30 days, out of the total 9 estimates, only 1 was
revised upward for the third quarter of 2012. Also, for the
fourth quarter of 2012, out of the total 8 estimates, only 1
upward revision was witnessed, while there were no downward
revisions over the same time frame. For the third quarter, none
of the estimates witnessed any movement in the last 7 days. For
the full year 2012, 2 out of the 9 estimates moved up over the
last 30 days.
Over the last 7 days, the current Zacks Consensus Estimate has
remained unchanged for the third quarter of 2012. The Zacks
Consensus Estimate for the third quarter 2012 increased by 2
cents to 84 cents from 82 cents per share in the past 30 days.
For full year 2012, the estimate increased by 7 cents to $3.74
over the past 30 days while it increased 4 cents over the past 7
With respect to earnings surprise, the results of the company
surpassed our expectations in each of the last four quarters. The
earnings surprise in the last four quarters ranged from 33.87% to
63.89%. The average surprise over the last four quarters remained
MarkWest Energy Partners L.P
) teamed up with Sunoco Logistics to build a distribution system
to transport ethane produced in the Marcellus Shale Basin (in
Northeastern U.S.) to markets along the Gulf Coast.
The partnership currently carries a Zacks #1 Rank, which is
equivalent to a short-term Strong Buy rating. Considering the
fundamentals, we maintain our long-term Outperform recommendation
on the stock.
MARKWEST EGY PT (MWE): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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