The 10-second takeaway
For the quarter ended June 30 (Q2), EnCana whiffed on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
EnCana logged revenue of $731.0 million. The five analysts polled by S&P Capital IQ anticipated revenue of $1.59 billion on the same basis. GAAP reported sales were 63% lower than the prior-year quarter's $1.99 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS were -$2.01 for Q2 versus $0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.8%, 4,070 basis points worse than the prior-year quarter. Operating margin was -57.6%, 6,680 basis points worse than the prior-year quarter. Net margin was -202.7%, 21,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $5.87 billion. The average EPS estimate is $1.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,135 members out of 1,165 rating the stock outperform, and 30 members rating it underperform. Among 229 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 224 give EnCana a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EnCana is hold, with an average price target of $20.50.
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