The 10-second takeaway
For the quarter ended March 31 (Q1), Enbridge crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted.
Margins dropped across the board.
Enbridge booked revenue of $7.88 billion. The five analysts polled by S&P Capital IQ expected revenue of $6.34 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $6.64 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 $0.61. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. Non-GAAP EPS of $0.61 for Q1 were 22% higher than the prior-year quarter's $0.50 per share. GAAP EPS of $0.30 for Q1 were 12% lower than the prior-year quarter's $0.34 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 20.2%, 100 basis points worse than the prior-year quarter. Operating margin was 5.6%, 150 basis points worse than the prior-year quarter. Net margin was 3.6%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.88 billion. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $26.80 billion. The average EPS estimate is $1.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 371 members out of 383 rating the stock outperform, and 12 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Enbridge a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Enbridge is outperform, with an average price target of $51.38.
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