TC Energy has announced its earnings results for the quarter ending November 20, 2023, revealing a stronger-than-expected performance. The pipeline company reported earnings per share (EPS) of $0.70, exceeding analysts’ consensus estimate of $0.65 by $0.05. The firm generated revenues of $2.20 billion, although this fell short of the expected $2.94 billion.
In addition to the earnings figures, TC Energy showcased a return on equity of 10.61% and a net margin of 23.86%. Comparatively, during the same quarter last year, the company recorded an EPS of $1.05.
Stock Performance and Market Activity
Following the earnings announcement, TC Energy’s stock experienced a notable increase. Shares rose by $2.12, closing at $63.52 during trading hours. The trading volume reached 3,386,004 shares, significantly higher than the average volume of 2,481,877. The company’s market capitalization stands at $66.13 billion, with a price-to-earnings (P/E) ratio of 27.38 and a beta of 0.73. Over the past year, TC Energy’s stock has seen a low of $43.59 and a high of $63.94.
In terms of liquidity, the company recorded a current ratio of 0.63 and a quick ratio of 0.56. Its debt-to-equity ratio is 1.60, while the 50-day moving average sits at $56.15, and the 200-day moving average at $53.49.
Dividend Increase and Institutional Interest
In a positive development, TC Energy announced an increase in its dividend, reflecting confidence in its financial stability. Institutional investors have shown significant interest in the company. Notably, GQG Partners LLC raised its holdings by 586.5% during the fourth quarter, acquiring an additional 13,801,371 shares, bringing its total to 16,154,469 shares valued at approximately $890.71 million.
Other institutional movements include BROOKFIELD Corp ON, which initiated a new position valued at $78.44 million, and Morgan Stanley, which increased its stake by 10.7%, owning 5,043,528 shares worth $277.45 million after acquiring an additional 487,178 shares.
The collective actions of institutional investors indicate a strong confidence in TC Energy’s prospects, with hedge funds and other large entities owning approximately 83.13% of the company’s stock.
Analyst Ratings and Future Outlook
Equities analysts have provided mixed ratings for TC Energy. Citigroup recently reiterated a “neutral” rating, while Wall Street Zen upgraded the stock from a “sell” to a “hold.” Weiss Ratings reaffirmed a “buy (b-)” rating, reflecting a positive outlook. In addition, Morgan Stanley maintained an “overweight” rating, and Scotiabank reaffirmed an “outperform” rating.
Currently, two analysts have rated TC Energy as a “Strong Buy,” seven have assigned a “Buy” rating, and two have indicated a “Hold.” According to MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $84.00.
TC Energy, headquartered in Calgary, Alberta, is a leading North American energy infrastructure company. Formerly known as TransCanada, it rebranded to reflect its extensive operations across Canada, the United States, and Mexico. The company is integral to the transportation and delivery of energy across the continent, specializing in long-distance natural gas transmission, liquids pipelines, natural gas storage, and power generation.
In summary, TC Energy’s recent earnings report demonstrates its ability to outperform expectations despite lower revenue figures, bolstered by strong institutional support and positive analyst ratings. As the company continues to navigate the energy landscape, its strategic decisions will be crucial in maintaining investor confidence and driving future growth.
