The 10-second takeaway
For the quarter ended March 31 (Q1), Encana beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved.
Margins improved across the board.
Encana reported revenue of $1.80 billion. The four analysts polled by S&P Capital IQ expected revenue of $1.70 billion on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $1.67 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 $0.33. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS were $0.02 for Q1 against -$0.49 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 63.8%, 830 basis points better than the prior-year quarter. Operating margin was 24.7%, 1,170 basis points better than the prior-year quarter. Net margin was 0.7%, 2,240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.47 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $6.43 billion. The average EPS estimate is $0.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,144 members out of 1,169 rating the stock outperform, and 25 members rating it underperform. Among 247 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 242 give Encana a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Encana is hold, with an average price target of $21.70.
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