Transcanada Earnings Preview: Can This Streak Finally End?

Transcanada (NYSE:TRP) will report earnings before markets open on Friday, April 26th. TransCanada Corporation is the parent company of TransCanada PipeLines Limited. The Company is focused on natural gas transmission and power services. TransCanada’s network of pipeline transports the majority of Western Canada’s natural gas production to markets in Canada and the United States. The Company also has interests in power plants in Canada and the United States.

Here is your Cheat Sheet to Transcanada Earnings:

Earnings Expectations: Analysts expect earnings of $0.54 per share on revenues of $2.27 billion. Currently, the company’s P/E ratio stands at 25.33.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.55 to a profit $0.51. For the current year, the average estimate is a profit of $2.3, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Transcanada has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 8,136 7,893 7,830 9,249 8,012
Diluted EPS ($) 2.38 2.00 1.80 2.18 1.83

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 2,366 1,947 1,783 2,126 2,078
Diluted EPS ($) 0.53 0.51 0.38 0.52 0.43

Past Performance:
Transcanada has missed analyst estimates 4 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]