The Gory Details of TC PipeLines's Earnings Miss

Seth Jayson, The Motley Fool
Updated

TC PipeLines (NYS: TCP) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), TC PipeLines whiffed 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.

Revenue details
 TC PipeLines booked revenue of $45.0 million. The three analysts polled by S&P Capital IQ expected revenue of $58.4 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $54.9 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 $0.56. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. GAAP EPS of $0.54 for Q4 were 23% 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 88.9%, 250 basis points worse than the prior-year quarter. Operating margin was 80.0%, 290 basis points worse than the prior-year quarter. Net margin was 66.7%, 310 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $54.0 million. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $219.8 million. The average EPS estimate is $2.49.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 167 members out of 180 rating the stock outperform, and 13 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give TC PipeLines a green thumbs-up, and four 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 $44.35.

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The article The Gory Details of TC PipeLines's Earnings Miss 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 position in any of the stocks mentioned. 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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