Precision Castparts Misses on Both Revenue and Earnings

Precision Castparts (NYSE: PCP  ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q3), Precision Castparts missed estimates on revenues and missed estimates on earnings per share.

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

Gross margins grew, operating margins grew, net margins dropped.

Revenue details
Precision Castparts notched revenue of $2.04 billion. The 14 analysts polled by S&P Capital IQ predicted sales of $2.10 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.82 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 $2.40. The 20 earnings estimates compiled by S&P Capital IQ predicted $2.47 per share. GAAP EPS of $2.31 for Q3 were 9.5% higher than the prior-year quarter's $2.11 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

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 32.1%, 60 basis points better than the prior-year quarter. Operating margin was 25.5%, 20 basis points better than the prior-year quarter. Net margin was 16.5%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.46 billion. On the bottom line, the average EPS estimate is $2.84.

Next year's average estimate for revenue is $8.46 billion. The average EPS estimate is $9.92.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,279 members out of 1,310 rating the stock outperform, and 31 members rating it underperform. Among 390 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 387 give Precision Castparts 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 Precision Castparts is outperform, with an average price target of $198.11.

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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 recommends Precision Castparts. 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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