The 10-second takeaway
For the quarter ended March 31 (Q1), Encana whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Encana booked revenue of $1.06 billion. The six analysts polled by S&P Capital IQ expected a top line of $1.32 billion on the same basis. GAAP reported sales were 41% lower than the prior-year quarter's $1.80 billion.
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 $0.24. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. Non-GAAP EPS of $0.24 for Q1 were 27% lower than the prior-year quarter's $0.33 per share. GAAP EPS were -$0.59 for Q1 compared to $0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.4%, much worse than the prior-year quarter. Operating margin was -14.2%, much worse than the prior-year quarter. Net margin was -40.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.40 billion. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $5.92 billion. The average EPS estimate is $0.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,087 members out of 1,117 rating the stock outperform, and 30 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give Encana a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Encana is hold, with an average price target of $21.37.
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