TransCanada (TSX: TRP) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), TransCanada missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew. GAAP earnings per share expanded significantly.
Margins grew across the board.
TransCanada reported revenue of $1.91 billion. The four analysts polled by S&P Capital IQ foresaw sales of $2.02 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 $0.48. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. Non-GAAP EPS of $0.48 for Q2 were 12% higher than the prior-year quarter's $0.43 per share. GAAP EPS of $0.49 for Q2 were 29% higher than the prior-year quarter's $0.38 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 53.7%, 520 basis points better than the prior-year quarter. Operating margin was 30.7%, 60 basis points better than the prior-year quarter. Net margin was 19.2%, 400 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $8.97 billion. The average EPS estimate is $2.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 401 members out of 412 rating the stock outperform, and 11 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give TransCanada 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 TransCanada is outperform, with an average price target of $49.41.
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