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.
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