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Sunoco Logistics’ 4Q14 Earnings Fell Short of Estimates

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Quarterly adjusted revenues fall short of estimates

Sunoco Logistics Partners (SXL) released its financial information for 4Q14 and full-year 2014 on February 18. Other energy midstream companies that have released 4Q14 results include Williams Companies (WMB), Spectra Energy (SE), and DCP Midstream (DPM). Spectra Energy makes up 2.03% of the Energy Select Sector ETF (XLE).

Between 3Q12 and 4Q14, Sunoco Logistics’ (SXL) adjusted revenues have increased 21%. From 4Q13 to 4Q14, adjusted revenues decreased by 10%.

As noted in the graph above, Sunoco Logistics’ adjusted revenues exceeded estimates in many of the past quarters. In 4Q14, however, adjusted revenues fell short of estimates by ~19%. On average, adjusted revenues have exceeded consensus revenues by ~4% in the past ten quarters.

The 1Q15 consensus sell side analysts’ adjusted revenues estimate for Sunoco Logistics is $3.88 billion, almost unchanged from the $3.87 billion it recorded in 4Q14.

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Quarterly adjusted earnings fall short of estimates

Between 3Q12 and 4Q14, Sunoco Logistics’ adjusted earnings per unit (or EPU) have declined to a loss of $0.05 per unit from $0.54 per unit. Adjusted EPU was $0.31 in 4Q13.

As noted in the graph above, Sunoco Logistics’ adjusted EPU exceeded expectations in many of the previous quarters. In 4Q14, however, adjusted earnings were negative $0.05 per unit versus analysts’ estimates of $0.37 per unit. On an average, adjusted EPS exceeded consensus EPS by ~1% in the past ten quarters.

The 1Q15 consensus sell side analysts’ adjusted EPU estimate for Sunoco Logistics is $0.407, which is significantly higher than what the company recorded in 4Q14.

Read the following section for a discussion of Sunoco Logistics’ (SXL) 4Q14 financial results.

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