The Gory Details of TransAlta's Earnings Miss
TransAlta (NYS: TAC) reported earnings on Friday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TransAlta beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
TransAlta tallied revenue of $689.6 million. The three analysts polled by S&P Capital IQ anticipated a top line of $652.3 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $815.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.13. The one earnings estimate compiled by S&P Capital IQ predicted $0.20 per share on the same basis. GAAP EPS of $0.11 for Q4 were 61% lower than the prior-year quarter's $0.28 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 37.7%, 260 basis points worse than the prior-year quarter. Operating margin was 17.8%, 810 basis points worse than the prior-year quarter. Net margin was 4%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $673.1 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $2.67 billion. The average EPS estimate is $1.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 67 members rating the stock outperform and five members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give TransAlta a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransAlta is hold, with an average price target of $23.47.
TransAlta investors who follow the energy business, will want to read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add TransAlta to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.