TransCanada (TSX: TRP) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), TransCanada beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped. GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins grew.
TransCanada notched revenue of $2.31 billion. The four analysts polled by S&P Capital IQ hoped for revenue of $2.09 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.91 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 $0.51. The eight earnings estimates compiled by S&P Capital IQ averaged $0.53 per share. Non-GAAP EPS of $0.51 for Q1 were 1.9% lower than the prior-year quarter's $0.52 per share. GAAP EPS of $0.62 for Q1 were 24% higher than the prior-year quarter's $0.50 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 54.8%, 120 basis points better than the prior-year quarter. Operating margin was 33.7%, 190 basis points worse than the prior-year quarter. Net margin was 20.5%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.16 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $9.35 billion. The average EPS estimate is $2.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 393 members out of 404 rating the stock outperform, and 11 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 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 $50.42.
Is TransCanada 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 TransCanada 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.