Panasonic Misses on the Top and Bottom Lines (PCRFY)

Panasonic Misses on the Top and Bottom Lines

Panasonic (NYSE: PC ) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Panasonic missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP loss per share increased.

Gross margins dropped, operating margins expanded, net margins dropped.

Revenue details
Panasonic reported revenue of $23.41 billion. The five analysts polled by S&P Capital IQ expected revenue of $25.29 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $26.92 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$3.78. The one earnings estimate compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS were -$3.88 for Q2 versus -$0.59 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.5%, 40 basis points worse than the prior-year quarter. Operating margin was 2.7%, 70 basis points better than the prior-year quarter. Net margin was -38.3%, 3,320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $24.56 billion. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $95.88 billion. The average EPS estimate is $0.27.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 240 members out of 271 rating the stock outperform, and 31 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Panasonic a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Panasonic is outperform, with an average price target of $10.05.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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