The 10-second takeaway
For the quarter ended March 31 (Q1), Praxair met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins shrank, operating margins expanded, and net margins expanded.
Praxair notched revenue of $2.84 billion. The 10 analysts polled by S&P Capital IQ expected revenue of $2.84 billion on the same basis. GAAP reported sales were 5.1% higher than the prior-year quarter's $2.70 billion.
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 $1.36. The 17 earnings estimates compiled by S&P Capital IQ anticipated $1.36 per share on the same basis. GAAP EPS of $1.38 for Q1 were 7.0% higher than the prior-year quarter's $1.29 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 43.1%, 10 basis points worse than the prior-year quarter. Operating margin was 22.1%, 20 basis points better than the prior-year quarter. Net margin was 14.8%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.98 billion. On the bottom line, the average EPS estimate is $1.46.
Next year's average estimate for revenue is $11.95 billion. The average EPS estimate is $5.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 665 members out of 691 rating the stock outperform, and 26 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Praxair 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 Praxair is outperform, with an average price target of $116.06.
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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.
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