The 10-second takeaway
For the quarter ended June 30 (Q2), TC PipeLines whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins shrank.
TC PipeLines chalked up revenue of $38.0 million. The two analysts polled by S&P Capital IQ predicted revenue of $61.4 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $47.0 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 $0.40. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.40 for Q2 were 33% lower than the prior-year quarter's $0.60 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 92.1%, 60 basis points better than the prior-year quarter. Operating margin was 73.7%, 720 basis points worse than the prior-year quarter. Net margin was 60.5%, 970 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $75.9 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $227.6 million. The average EPS estimate is $2.29.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members out of 179 rating the stock outperform, and 12 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give TC PipeLines 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 TC PipeLines is hold, with an average price target of $46.11.
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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.