TransCanada (TSX: TRP) reported earnings on Feb. 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TransCanada beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Gross margin contracted, operating margin dropped, and net margin increased.
TransCanada logged revenue of $2.30 billion. The four analysts polled by S&P Capital IQ expected sales of $2.23 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.07 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.57. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share on the same basis. GAAP EPS of $0.52 for Q3 were 37% higher than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.1%, 80 basis points worse than the prior-year quarter. Operating margin was 32.5%, 70 basis points worse than the prior-year quarter. Net margin was 16.5%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.26 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $9.03 billion. The average EPS estimate is $2.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 385 members out of 397 rating the stock outperform, and 12 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give TransCanada a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransCanada is outperform, with an average price target of $43.39.
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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. Motley Fool newsletter services have recommended buying shares of TransCanada. 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.