TransCanada (TSX: TRP) reported earnings on Oct. 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), TransCanada beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share didn't change.
Gross margins shrank, operating margins dropped, net margins grew.
Revenue details
TransCanada reported revenue of $2.16 billion. The five analysts polled by S&P Capital IQ looked for sales of $2.13 billion on the same basis. GAAP reported sales were 6.3% lower than the prior-year quarter's $2.30 billion.
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 $0.51. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.53 per share. GAAP EPS of $0.53 were the same as the prior-year quarter.
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 48.5%, 370 basis points worse than the prior-year quarter. Operating margin was 32.4%, 350 basis points worse than the prior-year quarter. Net margin was 18.0%, 140 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.28 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $8.00 billion. The average EPS estimate is $2.04.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 394 members out of 405 rating the stock outperform, and 11 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give TransCanada a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransCanada is hold, with an average price target of $47.42.
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