The 10-second takeaway
For the quarter ended March 31 (Q1), SPX met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
SPX notched revenue of $1.17 billion. The nine analysts polled by S&P Capital IQ expected sales of $1.16 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $1.20 billion.
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 $0.23. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS of $0.27 for Q1 were 40% lower than the prior-year quarter's $0.45 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 25.9%, 320 basis points worse than the prior-year quarter. Operating margin was 1.6%, 290 basis points worse than the prior-year quarter. Net margin was 1.2%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $5.23 billion. The average EPS estimate is $4.59.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 175 rating the stock outperform, and 12 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give SPX 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 SPX is outperform, with an average price target of $81.46.
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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.