The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Encana whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Encana notched revenue of $1.03 billion. The five analysts polled by S&P Capital IQ looked for sales of $1.57 billion on the same basis. GAAP reported sales were 56% lower than the prior-year quarter's $2.35 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 $0.36. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS were -$1.69 for Q3 versus $0.16 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 38.1%, 3,200 basis points worse than the prior-year quarter. Operating margin was -17.2%, 4,780 basis points worse than the prior-year quarter. Net margin was -121.4%, 12,650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.57 billion. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $5.54 billion. The average EPS estimate is $1.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,114 members out of 1,148 rating the stock outperform, and 34 members rating it underperform. Among 240 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 235 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 $21.00.
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