The 10-second takeaway
For the quarter ended June 30 (Q2), TC Pipelines whiffed on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped.
Gross margins shrank, operating margins improved, and net margins increased.
TC Pipelines notched revenue of $47.0 million. The three analysts polled by S&P Capital IQ anticipated a top line of $60.5 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $55.1 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 $0.60. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.66 per share. GAAP EPS of $0.62 for Q2 were 11% lower than the prior-year quarter's $0.70 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 91.5%, 230 basis points worse than the prior-year quarter. Operating margin was 80.9%, 300 basis points better than the prior-year quarter. Net margin was 70.2%, 470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $67.4 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $236.2 million. The average EPS estimate is $2.81.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 173 members out of 186 rating the stock outperform, and 13 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give TC Pipelines a green thumbs-up, and two 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 $45.95.
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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.