Suncor Energy Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
 For the quarter ended June 30 (Q2), Suncor Energy beat slightly on revenues and missed estimates on earnings per share.

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


Margins increased across the board.

Revenue details
 Suncor Energy notched revenue of $9.22 billion. The seven analysts polled by S&P Capital IQ wanted to see net sales of $9.10 billion on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $9.41 billion.

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

EPS details
 EPS came in at $0.43. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.61 per share. GAAP EPS of $0.43 for Q2 were 115% higher than the prior-year quarter's $0.20 per share.

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

Margin details
 For the quarter, gross margin was 52.2%, 30 basis points better than the prior-year quarter. Operating margin was 16.6%, 350 basis points better than the prior-year quarter. Net margin was 7.0%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $10.10 billion. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $39.49 billion. The average EPS estimate is $3.02.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,599 members out of 1,668 rating the stock outperform, and 69 members rating it underperform. Among 267 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 251 give Suncor Energy a green thumbs-up, and 16 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 $40.30.

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The article Suncor Energy Misses Where it Counts 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. 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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