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It's Showtime for Spectra Energy

By Seth Jayson - Updated Apr 7, 2017 at 12:06PM

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Checking expectations

Spectra Energy (NYSE: SE) is expected to report Q3 earnings on Nov. 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Spectra Energy's revenues will expand 2.8% and EPS will shrink -15.8%.

The average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.32.

Revenue details
Last quarter, Spectra Energy reported revenue of $1.11 billion. GAAP reported sales were 6.4% lower than the prior-year quarter's $1.19 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.33. GAAP EPS of $0.33 for Q2 were 23% lower than the prior-year quarter's $0.43 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 56.8%, 120 basis points better than the prior-year quarter. Operating margin was 32.9%, 90 basis points worse than the prior-year quarter. Net margin was 19.3%, 460 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.28 billion. The average EPS estimate is $1.59.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 821 members out of 850 rating the stock outperform, and 29 members rating it underperform. Among 243 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 236 give Spectra Energy a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spectra Energy is outperform, with an average price target of $32.83.

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