The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Teekay beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins grew, and net margins dropped.
Teekay reported revenue of $468.1 million. The eight analysts polled by S&P Capital IQ hoped for a top line of $431.5 million on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $497.3 million.
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 -$0.58. The 10 earnings estimates compiled by S&P Capital IQ forecast -$0.61 per share on the same basis. GAAP EPS of $0.69 for Q3 were 40% lower than the prior-year quarter's $1.15 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 49.4%, 490 basis points better than the prior-year quarter. Operating margin was 17.5%, 530 basis points better than the prior-year quarter. Net margin was 9.4%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $477.6 million. On the bottom line, the average EPS estimate is -$0.27.
Next year's average estimate for revenue is $1.81 billion. The average EPS estimate is -$1.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 197 members out of 213 rating the stock outperform, and 16 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Teekay 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 is outperform, with an average price target of $33.
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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.