The 10-second takeaway
For the quarter ended March 31 (Q1), TransCanada whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins dropped, net margins increased.
TransCanada tallied revenue of $1.91 billion. The four analysts polled by S&P Capital IQ expected sales of $2.25 billion on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $2.31 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 $0.52. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.55 per share. GAAP EPS of $0.50 for Q1 were 18% lower than the prior-year quarter's $0.61 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 53.6%, 20 basis points worse than the prior-year quarter. Operating margin was 35.6%, 170 basis points worse than the prior-year quarter. Net margin was 19.2%, 10 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $8.39 billion. The average EPS estimate is $2.36.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 390 members out of 402 rating the stock outperform, and 12 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give TransCanada a green thumbs-up, and one 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 $44.84.
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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.