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Coming Soon: TransCanada Earnings

By Seth Jayson - Updated Apr 10, 2017 at 1:44PM

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Checking expectations

TransCanada (TSX: TRP) is expected to report Q1 earnings on April 26. 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 TransCanada's revenues will grow 9.4% and EPS will increase 3.8%.

The average estimate for revenue is $2.09 billion. On the bottom line, the average EPS estimate is $0.54.

Revenue details
Last quarter, TransCanada tallied revenue of $2.10 billion. GAAP reported sales were 5.7% higher than the prior-year quarter's $1.98 billion.

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 $0.45. GAAP EPS of $0.43 for Q4 were 17% lower than the prior-year quarter's $0.52 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 67.6%, 290 basis points worse than the prior-year quarter. Operating margin was 30.4%, 290 basis points worse than the prior-year quarter. Net margin was 15.3%, 410 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $9.17 billion. The average EPS estimate is $2.19.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 393 members out of 405 rating the stock outperform, and 12 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give TransCanada a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransCanada is outperform, with an average price target of $48.01.

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