The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Spectra Energy missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Spectra Energy logged revenue of $1.07 billion. The four analysts polled by S&P Capital IQ expected a top line of $1.15 billion on the same basis. GAAP reported sales were 4.5% lower than the prior-year quarter's $1.12 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 11 earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.27 for Q3 were 31% lower than the prior-year quarter's $0.39 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.6%, 2,460 basis points worse than the prior-year quarter. Operating margin was 30.6%, 130 basis points worse than the prior-year quarter. Net margin was 16.7%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $5.28 billion. The average EPS estimate is $1.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 822 members out of 851 rating the stock outperform, and 29 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 232 give Spectra Energy a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spectra Energy is outperform, with an average price target of $31.42.
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