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TC PipeLines Whiffs on Revenues

By Seth Jayson - Updated Apr 7, 2017 at 12:05PM

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Just the facts, Fool.

TC PipeLines (NYSE: TCP) reported earnings on Oct. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), TC PipeLines whiffed on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped.

Gross margins shrank, operating margins dropped, net margins grew.

Revenue details
TC PipeLines tallied revenue of $48.0 million. The three analysts polled by S&P Capital IQ anticipated net sales of $58.9 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $58.0 million.

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

EPS details
EPS came in at $0.64. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. GAAP EPS of $0.64 for Q3 were 15% lower than the prior-year quarter's $0.75 per share.

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

Margin details
For the quarter, gross margin was 91.7%, 240 basis points worse than the prior-year quarter. Operating margin was 85.4%, 30 basis points worse than the prior-year quarter. Net margin was 72.9%, 270 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $60.5 million. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $223.5 million. The average EPS estimate is $2.61.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 169 members out of 183 rating the stock outperform, and 14 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 $46.05.

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