The 10-second takeaway
For the quarter ended March 31 (Q1), Spectra Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share didn't change.
Margins dropped across the board.
Spectra Energy reported revenue of $1.59 billion. The four analysts polled by S&P Capital IQ expected to see revenue of $1.55 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 11 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.51 were the same as 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 31.8%, much worse than the prior-year quarter. Operating margin was 31.8%, 170 basis points worse than the prior-year quarter. Net margin was 21.4%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.21 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $5.35 billion. The average EPS estimate is $1.51.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 822 members out of 851 rating the stock outperform, and 29 members rating it underperform. Among 233 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 226 give Spectra Energy a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spectra Energy is outperform, with an average price target of $29.75.
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