TC Pipelines Whiffs on Revenue

Seth Jayson, The Motley Fool
Updated

TC Pipelines (NYS: TCP) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), TC Pipelines whiffed on revenue and missed estimates on earnings per share.

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


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

Revenue details
TC Pipelines notched revenue of $47.0 million. The three analysts polled by S&P Capital IQ anticipated a top line of $60.5 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $55.1 million.

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 $0.60. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.66 per share. GAAP EPS of $0.62 for Q2 were 11% lower than the prior-year quarter's $0.70 per share.

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 91.5%, 230 basis points worse than the prior-year quarter. Operating margin was 80.9%, 300 basis points better than the prior-year quarter. Net margin was 70.2%, 470 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $67.4 million. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $236.2 million. The average EPS estimate is $2.81.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 173 members out of 186 rating the stock outperform, and 13 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give TC Pipelines 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 TC Pipelines is hold, with an average price target of $45.95.

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The article TC Pipelines Whiffs on Revenue originally appeared on Fool.com.

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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