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Teekay Tankers Goes Red

Teekay Tankers (NYSE: TNK  ) reported earnings on Aug. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Teekay Tankers crushed expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Margins dropped across the board.

Revenue details
Teekay Tankers booked revenue of $51.0 million. The six analysts polled by S&P Capital IQ predicted sales of $32.7 million on the same basis. GAAP reported sales were 69% higher than the prior-year quarter's $28.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.01. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.01 per share. GAAP EPS were -$0.05 for Q2 against $0.02 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.0%, 510 basis points worse than the prior-year quarter. Operating margin was 8.4%, 650 basis points worse than the prior-year quarter. Net margin was -9.0%, 1,400 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $46.7 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $155.8 million. The average EPS estimate is $0.09.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 260 members out of 277 rating the stock outperform, and 17 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Teekay Tankers a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Teekay Tankers is outperform, with an average price target of $5.94.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 11, 2012, at 6:58 PM, iheartweimers wrote:

    I bought a truckload of TWK in January because of

    the yield and I'm not disappointed now, having

    held thru the April rise to over $6 and back down

    to the current $4 without a trade. But with ex-date

    coming up on the 16th, I believe it's time to add.

    With a yield currently 12.98% and target of $5.94,

    this is one of my better performers and I might

    have overlooked the Q2 results were not for this

    article. Ty

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