Cameco
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cameco whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew significantly.
Gross margins increased, operating margins contracted, net margins increased.
Revenue details
Cameco booked revenue of $414.2 million. The four analysts polled by S&P Capital IQ predicted a top line of $574.8 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $507.3 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 $0.13. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.21 for Q3 were 110% higher than the prior-year quarter's $0.10 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 46.6%, 60 basis points better than the prior-year quarter. Operating margin was 14.5%, 440 basis points worse than the prior-year quarter. Net margin was 20.0%, 1,250 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $705.0 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $2.25 billion. The average EPS estimate is $1.03.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,785 members out of 1,827 rating the stock outperform, and 42 members rating it underperform. Among 351 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 343 give Cameco a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cameco is outperform, with an average price target of $28.08.
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