Cameco Beats Analyst Estimates Silly

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Cameco (TSX: CCO) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cameco crushed expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.

Gross margins grew, operating margins improved, net margins dropped.

Revenue details
Cameco reported revenue of $961.4 million. The three analysts polled by S&P Capital IQ predicted revenue of $774.6 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $677.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.66. The eight earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. GAAP EPS of $0.66 for Q4 were 27% higher than the prior-year quarter's $0.52 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 47.6%, 70 basis points better than the prior-year quarter. Operating margin was 29.2%, 630 basis points better than the prior-year quarter. Net margin was 27.1%, 360 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $570.8 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $2.36 billion. The average EPS estimate is $1.23.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 85 members out of 115 rating the stock outperform, and 30 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Cameco a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cameco is outperform, with an average price target of $31.24.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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