The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Lufkin Industries beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins expanded.
Lufkin Industries notched revenue of $340.3 million. The five analysts polled by S&P Capital IQ foresaw net sales of $331.2 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $231.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.78. The eight earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS of $0.78 for Q3 were 66% higher than the prior-year quarter's $0.47 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.3%, about the same as the prior-year quarter. Operating margin was 12.4%, 10 basis points better than the prior-year quarter. Net margin was 7.7%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $355.2 million. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $3.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 589 members out of 608 rating the stock outperform, and 19 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Lufkin Industries a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lufkin Industries is outperform, with an average price target of $71.57.
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