TransCanada Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

TransCanada (TSX: TRP) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), TransCanada missed estimates on revenues and met expectations on earnings per share.

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


Margins grew across the board.

Revenue details
 TransCanada reported revenue of $1.91 billion. The four analysts polled by S&P Capital IQ foresaw sales of $2.02 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.48. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. Non-GAAP EPS of $0.48 for Q2 were 12% higher than the prior-year quarter's $0.43 per share. GAAP EPS of $0.49 for Q2 were 29% higher than the prior-year quarter's $0.38 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 53.7%, 520 basis points better than the prior-year quarter. Operating margin was 30.7%, 60 basis points better than the prior-year quarter. Net margin was 19.2%, 400 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $8.97 billion. The average EPS estimate is $2.19.

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 $49.41.

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The article TransCanada Increases Sales but Misses Revenue Estimate 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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Originally published