Teekay LNG Partners Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Teekay LNG Partners (NYS: TGP) reported earnings on May 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Teekay LNG Partners missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank.


Gross margin increased, operating margin improved, and net margin shrank.

Revenue details
Teekay LNG Partners notched revenue of $99.2 million. The three analysts polled by S&P Capital IQ expected revenue of $107 million on the same basis. GAAP-reported sales were 6.4% higher than the prior-year quarter's $93.2 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 $0.55. The four earnings estimates compiled by S&P Capital IQ averaged $0.49 per share. GAAP EPS of $0.38 for Q1 were 5% lower than the prior-year quarter's $0.40 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 79%, 170 basis points better than the prior-year quarter. Operating margin was 47%, 50 basis points better than the prior-year quarter. Net margin was 24.9%, 190 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $114.6 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $431.4 million. The average EPS estimate is $2.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 213 members rating the stock outperform and seven members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Teekay LNG Partners 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 Teekay LNG Partners is outperform, with an average price target of $41.70.

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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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