It has been about a month since the last earnings report for TC PipeLines, LP . Shares have lost about 3.4% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2016 Results
TC PipeLines reported fourth-quarter 2016 earnings per unit (EPU) of $0.70 that missed the Zacks Consensus Estimate of $0.73. Also, the figure deteriorated from $0.79 per unit recorded in the year-ago quarter.
Quarterly transmission revenues of $91 million missed the Zacks Consensus Estimate of $132 million. Nonetheless, the top line improved 2.2% from the year-earlier quarter level.
Distribution & Cash Flow
The partnership's total distributable cash flow declined about 9.5% year over year to $67 million.
TC PipeLines distributed $66 million in the reported quarter as against $59 million in the year-ago quarter.
Pipeline Systems' Performance
Great Lakes: The partnership incurred a loss of $5 million from equity investment, narrower than the prior-year quarter loss of $18 million.
Northern Border Pipeline: Equity loss at this pipeline totaled $17 million, wider than the prior-year quarter loss of $16 million.
Liquidity
As of Dec 31, 2016, TC PipeLines had long-term debt (excluding current portion) of $1,835 million, which represents a debt-to-capitalization ratio of 61.6%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter.
VGM Scores
At this time, TC PipeLines's stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for momentum investors, based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of this revision looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is TC PipeLines (TCP) Down 3.4% Since the Last Earnings Report?
It has been about a month since the last earnings report for TC PipeLines, LP . Shares have lost about 3.4% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2016 Results
TC PipeLines reported fourth-quarter 2016 earnings per unit (EPU) of $0.70 that missed the Zacks Consensus Estimate of $0.73. Also, the figure deteriorated from $0.79 per unit recorded in the year-ago quarter.
Quarterly transmission revenues of $91 million missed the Zacks Consensus Estimate of $132 million. Nonetheless, the top line improved 2.2% from the year-earlier quarter level.
Distribution & Cash Flow
The partnership's total distributable cash flow declined about 9.5% year over year to $67 million.
TC PipeLines distributed $66 million in the reported quarter as against $59 million in the year-ago quarter.
Pipeline Systems' Performance
Great Lakes: The partnership incurred a loss of $5 million from equity investment, narrower than the prior-year quarter loss of $18 million.
Northern Border Pipeline: Equity loss at this pipeline totaled $17 million, wider than the prior-year quarter loss of $16 million.
Liquidity
As of Dec 31, 2016, TC PipeLines had long-term debt (excluding current portion) of $1,835 million, which represents a debt-to-capitalization ratio of 61.6%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter.
TC PipeLines, LP Price and Consensus
TC PipeLines, LP Price and Consensus | TC PipeLines, LP Quote
VGM Scores
At this time, TC PipeLines's stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for momentum investors, based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of this revision looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.