The 10-second takeaway
For the quarter ended March 31 (Q1), TC Pipelines whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins contracted across the board.
TC Pipelines booked revenue of $54.0 million. The two analysts polled by S&P Capital IQ looked for a top line of $73.2 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $55.9 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 $0.71. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS of $0.71 for Q1 were 21% lower than the prior-year quarter's $0.90 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 92.6%, 190 basis points worse than the prior-year quarter. Operating margin was 83.3%, 130 basis points worse than the prior-year quarter. Net margin was 72.2%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $84.2 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $254.3 million. The average EPS estimate is $2.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 159 members out of 172 rating the stock outperform, and 13 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 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 $48.20.
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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.