The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TC PipeLines whiffed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
TC PipeLines booked revenue of $45.0 million. The three analysts polled by S&P Capital IQ expected revenue of $58.4 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $54.9 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 $0.56. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. GAAP EPS of $0.54 for Q4 were 23% lower than the prior-year quarter's $0.70 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 88.9%, 250 basis points worse than the prior-year quarter. Operating margin was 80.0%, 290 basis points worse than the prior-year quarter. Net margin was 66.7%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $54.0 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $219.8 million. The average EPS estimate is $2.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 167 members out of 180 rating the stock outperform, and 13 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give TC PipeLines 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 TC PipeLines is hold, with an average price target of $44.35.
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