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.
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