The company, which is engaged in the transportation, storage and distribution of refined petroleum products, said net income for the most recent quarter more than doubled to $242.6 million versus $113.0 million from the year ago quarter.
Diluted net income per limited unit was up to $1.07 for the 2014 first quarter versus 50 cents for the same period last year.
Diluted net income per unit was $1.07 for the quarter, higher than the guidance of 70 cents issued by management in February 2014.
TheStreet Ratings team rates MAGELLAN MIDSTREAM PRTNRS LP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MAGELLAN MIDSTREAM PRTNRS LP (MMP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 14.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MAGELLAN MIDSTREAM PRTNRS LP has improved earnings per share by 22.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MAGELLAN MIDSTREAM PRTNRS LP increased its bottom line by earning $2.56 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus $2.56).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 23.5% when compared to the same quarter one year prior, going from $153.80 million to $190.01 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MAGELLAN MIDSTREAM PRTNRS LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for MAGELLAN MIDSTREAM PRTNRS LP is rather high; currently it is at 51.13%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 32.90% significantly outperformed against the industry average.
- You can view the full analysis from the report here: MMP Ratings Report