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Are You Expecting This from TransGlobe Energy?

By Seth Jayson - Updated Apr 10, 2017 at 2:11PM

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Checking expectations

TransGlobe Energy (Nasdaq: TGA) is expected to report Q4 earnings around March 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict TransGlobe Energy's revenues will grow 50.0% and EPS will expand 27.6%.

The average estimate for revenue is $90.8 million. On the bottom line, the average EPS estimate is $0.37.

Revenue details
Last quarter, TransGlobe Energy booked revenue of $74.6 million. GAAP reported sales were 3.9% higher than the prior-year quarter's $71.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.21. GAAP EPS of $0.16 for Q3 were 54% lower than the prior-year quarter's $0.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 84.4%, 200 basis points worse than the prior-year quarter. Operating margin was 59.7%, 570 basis points worse than the prior-year quarter. Net margin was 15.8%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $311.9 million. The average EPS estimate is $1.17.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 507 members out of 530 rating the stock outperform, and 23 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give TransGlobe Energy a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransGlobe Energy is outperform, with an average price target of $14.75.

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TransGlobe Energy Corporation
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