The 10-second takeaway
For the quarter ended June 30 (Q2), Encana crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins increased across the board.
Encana booked revenue of $1.98 billion. The four analysts polled by S&P Capital IQ predicted sales of $1.46 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $731.0 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 $0.34. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. Non-GAAP EPS of $0.34 for Q2 were 26% higher than the prior-year quarter's $0.27 per share. GAAP EPS were $0.99 for Q2 versus -$2.01 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 64.6%, much better than the prior-year quarter. Operating margin was 40.0%, much better than the prior-year quarter. Net margin was 36.8%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $5.97 billion. The average EPS estimate is $0.94.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,098 members out of 1,129 rating the stock outperform, and 31 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 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 $21.40.
Is Encana 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 Encana 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.