Plains All American Pipeline (PAA) Stock Falls on Revenue Miss
NEW YORK (TheStreet) -- Shares of Plains All American Pipeline (PAA) - Get Report were falling 8.3% to $30.25 on Wednesday after the oil and gas pipeline company missed analysts' estimates for revenue in the third quarter.
After the market closed on Tuesday, Plains All American reported revenue of $5.6 billion for the third quarter, which represents a 49.7% decrease from the year-ago quarter, and falls below analysts' estimates of $7.12 billion for the quarter.
The company reported earnings of 28 cents a share for the quarter, above analysts' estimates of 25 cents a share.
"PAA reported third quarter results with adjusted EBITDA of $497 million, which was $17 million above the mid-point of our quarterly guidance range," Chairman and CEO Greg Armstrong said in a statement.
The pipeline company also said it will a quarterly distribution of 70 cents per limited partner "next week," a 6.1% increase from the 66 cents per limited partner it paid in the year-ago quarter.
TheStreet Ratings team rates PLAINS ALL AMER PIPELNE -LP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate PLAINS ALL AMER PIPELNE -LP (PAA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and generally higher debt management risk.
You can view the full analysis from the report here: PAA
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