The 10-second takeaway
For the quarter ended Jan. 27 (Q1), Esterline Technologies met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Esterline Technologies booked revenue of $470.9 million. The 10 analysts polled by S&P Capital IQ expected to see revenue of $476.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $370.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.98. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.62 per share on the same basis. GAAP EPS of $0.73 for Q1 were 25% lower than the prior-year quarter's $0.97 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 33.6%, 200 basis points worse than the prior-year quarter. Operating margin was 7.9%, 460 basis points worse than the prior-year quarter. Net margin was 4.8%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $519.5 million. On the bottom line, the average EPS estimate is $1.31.
Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $5.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 152 members 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 $70.30.
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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. 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.