TC Energy Reports Earnings and Increases Dividend Amid Market Activity

TC Energy announced its quarterly earnings results on January 30, 2024, revealing earnings per share (EPS) of $0.56, meeting analysts’ expectations according to Zacks. The company’s revenue for the quarter was $1.86 billion, which fell short of the projected $2.63 billion. This performance marks a decrease from the same period last year, when TC Energy reported an EPS of $1.03.

Stock Performance and Market Indicators

Following the earnings announcement, shares of TC Energy (NYSE: TRP) experienced a notable increase, rising 3.4% to reach $52.18. During trading on that day, the company saw a volume of 3,554,902 shares exchanged, significantly higher than its average volume of 2,288,560. The stock’s fifty-day moving average stands at $52.17, while the two-hundred-day moving average is at $50.30. Currently, TC Energy boasts a market capitalization of $54.29 billion, a price-to-earnings (PE) ratio of 17.81, and a beta of 0.73.

TC Energy’s financial metrics also reflect a return on equity of 11.22% and a net margin of 28.98%. The company has a debt-to-equity ratio of 1.54, and its current and quick ratios are 0.61 and 0.54, respectively. Over the past year, the stock has fluctuated between a low of $43.51 and a high of $55.37.

Dividend Increase and Investor Sentiment

In addition to its earnings report, TC Energy announced an increase in its quarterly dividend. Shareholders of record on December 31, 2024, will receive a dividend of $0.85, which translates to an annualized dividend of $3.40 and a yield of 6.5%. This new dividend reflects an increase from the previous quarterly payment of $0.61, with the company’s payout ratio currently at 84.30%.

Investor response has been positive, as institutional investors have been adjusting their holdings in TC Energy. For instance, EverSource Wealth Advisors LLC raised its stake by 50.5% in the second quarter, now owning 3,706 shares valued at $181,000. Similarly, Lazard Asset Management LLC increased its holdings by 26.0%, acquiring an additional 781 shares during the last quarter, bringing its total to 3,781 shares worth $184,000.

Overall, institutional investors own 83.13% of TC Energy’s stock, indicating strong confidence in the company’s future prospects.

Overview of TC Energy

TC Energy Corporation operates as a leading energy infrastructure company across North America. The firm manages five segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Energy Solutions. It operates an extensive network, comprising 93,600 kilometers of natural gas pipelines that facilitate the transport of natural gas to local distribution companies, power generation plants, and various industrial facilities.

This latest earnings report and dividend increase demonstrate TC Energy’s commitment to delivering value to shareholders while navigating the complexities of the energy sector.