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Chart Industries Whiffs on Earnings

Chart Industries (Nasdaq: GTLS  ) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Chart Industries missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.

Margins contracted across the board.

Revenue details
Chart Industries logged revenue of $254.2 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $260.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $211.3 million.

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 $0.66. The nine earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. GAAP EPS of $0.61 for Q3 were 3.4% higher than the prior-year quarter's $0.59 per share.

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 30.7%, 120 basis points worse than the prior-year quarter. Operating margin was 12.6%, 170 basis points worse than the prior-year quarter. Net margin was 7.3%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $280.4 million. On the bottom line, the average EPS estimate is $0.89.

Next year's average estimate for revenue is $996.9 million. The average EPS estimate is $2.70.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 382 members out of 395 rating the stock outperform, and 13 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Chart Industries a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chart Industries is outperform, with an average price target of $81.43.

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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  • Report this Comment On November 03, 2012, at 1:19 AM, lovesstocks2 wrote:

    This company's results and margins have gyrated for a long time. A few big orders can really have a significant effect on the orders and the backlogs. The idea that the company fell short at all shows how ignorant the analysts are.

    Most of what you cited can easily be quarterly variances at this company. Order happen in lumps here. Gross margin varies quarter to quarter. If you are looking for predictability, then look elsewhere.

    This company is too small for this kind of analysis.

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