Plains GP (PAGP) Stock Tanks Following Earnings Miss
NEW YORK (TheStreet) -- Shares of Plains GP Holdings (PAGP) - Get Report are down 16.86% to $12.80 on heavy volume on Wednesday following the release of the company's third quarter results Tuesday afternoon.
The Houston-based company, which owns an interest in Plains All American Pipeline, reported third quarter earnings of 14 cents per share versus analysts' 17 cent per share expectations.
The business reported revenue of $5.55 billion in the quarter, also below analysts' $7.85 billion expectations for the period.
"We remain constructive on the intermediate to long-term outlook for crude oil prices, activity levels, and PAAs growth prospects. In the near term we remain cautious due to the impacts of excess capacity and related competitive pressures, and our fourth quarter guidance reflects our most current view of the near term environment," said CEO Greg Armstrong.
Nearly 13 million shares have been traded so far today, well ahead of the stock's 2.5 million share daily average.
TheStreet Ratings team rates PLAINS GP HOLDINGS LP as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
We rate PLAINS GP HOLDINGS LP (PAGP) a SELL. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, weak operating cash flow and poor profit margins.
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