Will These Numbers from TransCanada Be Good Enough for You?

Seth Jayson, The Motley Fool
Updated

TransCanada (TSX: TRP) is expected to report Q2 earnings on July 26. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict TransCanada's revenues will increase 14.0% and EPS will expand 11.6%.

The average estimate for revenue is $2.02 billion. On the bottom line, the average EPS estimate is $0.48.


Revenue details
 Last quarter, TransCanada tallied revenue of $2.21 billion. GAAP reported sales were 14% higher than the prior-year quarter's $1.95 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.51. GAAP EPS of $0.62 for Q1 were 24% higher than the prior-year quarter's $0.50 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 54.8%, 380 basis points worse than the prior-year quarter. Operating margin was 34.3%, 70 basis points worse than the prior-year quarter. Net margin was 20.5%, 170 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.96 billion. The average EPS estimate is $2.18.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 401 members out of 412 rating the stock outperform, and 11 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give TransCanada 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 TransCanada is outperform, with an average price target of $50.42.

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The article Will These Numbers from TransCanada Be Good Enough for You? 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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