The 10-second takeaway
For the quarter ended Oct. 26 (Q4), Esterline Technologies met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins expanded across the board.
Esterline Technologies reported revenue of $530.7 million. The nine analysts polled by S&P Capital IQ expected to see sales of $526.0 million on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $502.4 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 $2.17. The eight earnings estimates compiled by S&P Capital IQ averaged $1.63 per share. GAAP EPS of $1.97 for Q4 were 218% higher than the prior-year quarter's $0.62 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 38.5%, 140 basis points better than the prior-year quarter. Operating margin was 15.5%, 210 basis points better than the prior-year quarter. Net margin was 11.6%, 770 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $480.8 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $5.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 150 members out of 158 rating the stock outperform, and eight members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Esterline Technologies 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 Esterline Technologies is outperform, with an average price target of $70.25.
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