Suncor Energy Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Suncor Energy (TSX: SU) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Suncor Energy missed estimates on revenues and crushed expectations on earnings per share.

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


Gross margins increased, operating margins shrank, net margins grew.

Revenue details
 Suncor Energy reported revenue of $9.75 billion. The seven analysts polled by S&P Capital IQ looked for sales of $9.95 billion on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $10.10 billion.

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 $1.03. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. GAAP EPS of $1.03 for Q3 were 41% higher than the prior-year quarter's $0.73 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 55.1%, 720 basis points better than the prior-year quarter. Operating margin was 20.9%, 240 basis points worse than the prior-year quarter. Net margin was 16.2%, 390 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $10.87 billion. On the bottom line, the average EPS estimate is $0.80.

Next year's average estimate for revenue is $40.60 billion. The average EPS estimate is $3.21.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,622 members out of 1,687 rating the stock outperform, and 65 members rating it underperform. Among 332 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 321 give Suncor Energy a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Suncor Energy is outperform, with an average price target of $42.37.

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The article Suncor Energy Crushes Earnings Estimates 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. The Motley Fool has no positions in the stocks mentioned above. 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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