The 10-second takeaway
For the quarter ended June 30 (Q2), Teekay Tankers crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins dropped across the board.
Teekay Tankers booked revenue of $51.0 million. The six analysts polled by S&P Capital IQ predicted sales of $32.7 million on the same basis. GAAP reported sales were 69% higher than the prior-year quarter's $28.6 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 $0.01. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.01 per share. GAAP EPS were -$0.05 for Q2 against $0.02 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 55.0%, 510 basis points worse than the prior-year quarter. Operating margin was 8.4%, 650 basis points worse than the prior-year quarter. Net margin was -9.0%, 1,400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $46.7 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $155.8 million. The average EPS estimate is $0.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 260 members out of 277 rating the stock outperform, and 17 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Teekay Tankers 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 Tankers is outperform, with an average price target of $5.94.
- Add Teekay Tankers to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.