TECO Energy Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

TECO Energy (NYS: TE) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TECO Energy whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted.

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

Revenue details
TECO Energy logged revenue of $750.2 million. The six analysts polled by S&P Capital IQ expected to see a top line of $844.9 million. Sales were 3.2% lower than the prior-year quarter's $775 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.25. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share. GAAP EPS of $0.25 for Q4 were 3.8% lower than the prior-year quarter's $0.26 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 64.9%, 1,500 basis points better than the prior-year quarter. Operating margin was 17.4%, 80 basis points better than the prior-year quarter. Net margin was 7.1%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $693.8 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $3.50 billion. The average EPS estimate is $1.39.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 219 members out of 239 rating the stock outperform, and 20 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give TECO Energy a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TECO Energy is hold, with an average price target of $19.06.

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At the time thisarticle 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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