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.
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