The 10-second takeaway
For the quarter ended March 31 (Q1), TC PipeLines whiffed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
TC PipeLines reported revenue of $43.0 million. The three analysts polled by S&P Capital IQ predicted revenue of $58.6 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $54.0 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 $0.52. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. GAAP EPS of $0.52 for Q1 were 27% lower than the prior-year quarter's $0.71 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 90.7%, 190 basis points worse than the prior-year quarter. Operating margin was 79.1%, 420 basis points worse than the prior-year quarter. Net margin was 67.4%, 480 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $57.7 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $212.8 million. The average EPS estimate is $2.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 164 members out of 177 rating the stock outperform, and 13 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give TC PipeLines 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 TC PipeLines is hold, with an average price target of $44.78.
Is TC PipeLines the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add TC PipeLines 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 position in any of the stocks mentioned. 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.
More from The Motley Fool
Are Analysts Wrong to Be Bearish on TransCanada?
Analysts have been tripping over themselves to downgrade TransCanada in recent weeks. Find out whether investors should listen to the experts or start buying shares instead.
Is TC Pipelines's Stock Plunge in September Something to Worry About?
The broader weakness in the MLP space dragged TC Pipelines down in September, but it's lower price does actually mean something to its future growth.
TC PipeLines Whiffs on Revenues
Just the facts, Fool.