Why Teekay Corporation Stock Took Off Today

Markets Motley Fool

What happened

Continue Reading Below

Shares of crude oil and gas tanker company Teekay Corporation (NYSE: TK) took off on a wild rump this morning, closing the day up 9.5% after reporting Q3 earnings (i.e., losses) that were less horrible than anticipated. Calculated according to GAAP accounting standards, TK lost $0.15 per share in its fiscal third quarter (as compared to last year's $0.07-per-share profit) and $0.41 per share pro forma.

So what

All of those numbers sound pretty bad, and yet, when you consider that Wall Street had expected Teekay to report a $0.44 per share loss, the company actually exceeded expectations. Additionally, TK reported revenue of $500.8 million for the quarter, significantly ahead of Wall Street's anticipated $458.3 million.

When compared to last year's Q3, Teekay's revenues slid 8.5% year over year.

Now what

Continue Reading Below

Teekay management declined to provide guidance for what it might earn this quarter. Analysts who follow the stock, though, predict the company will lose $0.05 per share (presumably pro forma), narrowing its year-ago loss of $0.22 per share (also pro forma). Revenues for the fiscal fourth quarter are expected to come in at $530.6 million, up 4% year over year.

When all's said and done, Wall Street anticipates that Teekay will end this year with a $1.28 per-share loss on revenues of $1.99 billion -- more than twice last year's loss on a 9% decline in revenues.

10 stocks we like better than Teekay
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Teekay wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of November 6, 2017

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.