NuStar (NS) Q1 Earnings Lag Amid High Impairment Charges
Zacks Investment Research | May 12, 2019 10:07PM ET
NuStar Energy L.P. (NYSE:NS) reported first-quarter 2019 results on May 10, wherein earnings and sales lagged the Zacks Consensus Estimate, resulting in a comprehensive miss. The partnership posted adjusted earnings per limited partner unit of 14 cents, significantly missing the Zacks Consensus Estimate of 32 cents due to massive impairment charges that spiked total costs in the quarter under review by 90.6% on a year-over-year basis. The bottom line also deteriorated from the year-ago earnings of 33 cents a unit.
NuStar incurred an operating loss of $233.1 against an income of $98.5 million in the prior-year quarter, owing to an increase in total costs. Total costs and expenses amounted to $719.6 million compared with the year-ago level of $377.4 million. Asset and goodwill impairment charges incurred in the quarter under review hit the company hard, as is evident fromits net loss of $277.8 million against earnings of $126.1 million in the year-ago period.
Quarterly revenues of $486.5 million missed the Zacks Consensus Estimate of $488 million. However, the top line was higher than the year-ago level of $475.8 million. The outperformance can be attributed to increased throughput volumes from crude oil pipelines.
NuStar Energy L.P. Price, Consensus and EPS Surprise
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