Why Precision Castparts' Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Precision Castparts (NYSE: PCP  ) jumped as much as 10% today after the company released earnings.

So what: Revenue jumped 25%, to $2.44 billion, but fell short of the $2.51 billion estimate from Wall Street. Net income was up 23%, to $414.2 million, or $2.82 per share, ahead of the $2.76 per share estimate. 

Now what: The acquisition of Titanium Metals drove revenue growth, with sales up 31%. This looks like a well-timed acquisition that will continue to drive earnings, as aircraft and other products continue to use more titanium. I think the stock's 17 forward P/E ratio is very attractive considering the earnings beat, and shares can move higher from here.

Interested in more info on Precision Castparts? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2421535, ~/Articles/ArticleHandler.aspx, 11/28/2014 9:35:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement