The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TC Pipelines whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins dropped across the board.
TC Pipelines booked revenue of $54.9 million. The three analysts polled by S&P Capital IQ foresaw revenue of $64.3 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $51.5 million.
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 $0.70. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.70 for Q4 were 11% lower than the prior-year quarter's $0.79 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 91.4%, 240 basis points worse than the prior-year quarter. Operating margin was 82.9%, 140 basis points worse than the prior-year quarter. Net margin was 69.8%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $57.0 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $260.5 million. The average EPS estimate is $2.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 152 members out of 164 rating the stock outperform, and 12 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give TC Pipelines 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 TC Pipelines is hold, with an average price target of $49.28.
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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. 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.