The 10-second takeaway
For the quarter ended Sep. 30 (Q3), TransAlta missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased.
Margins grew across the board.
TransAlta chalked up revenue of $546.2 million. The three analysts polled by S&P Capital IQ expected revenue of $588.1 million on the same basis. GAAP reported sales were 9.8% lower than the prior-year quarter's $605.5 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 $0.18. The nine earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS of $0.24 for Q3 were 9.1% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.1%, 410 basis points better than the prior-year quarter. Operating margin was 16.9%, 20 basis points better than the prior-year quarter. Net margin was 11.9%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $659.9 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $2.37 billion. The average EPS estimate is $0.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 85 members out of 90 rating the stock outperform, and five members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give TransAlta 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 TransAlta is hold, with an average price target of $21.96.
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