The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Enbridge beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
Enbridge booked revenue of $5.88 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $5.13 billion on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $4.11 billion.
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 $0.24. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.24 for Q3 were much higher than the prior-year quarter's $0.01 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 23.6%, 360 basis points better than the prior-year quarter. Operating margin was 6.1%, 140 basis points better than the prior-year quarter. Net margin was 3.8%, 370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.67 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $23.22 billion. The average EPS estimate is $1.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 374 members out of 386 rating the stock outperform, and 12 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Enbridge a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Enbridge is outperform, with an average price target of $43.25.
Are you missing a major story in the energy space? Read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add Enbridge to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.