The 10-second takeaway
For the quarter ended March 31 (Q1), Cooper Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, and net margins dropped.
Cooper Industries reported revenue of $1.40 billion. The 16 analysts polled by S&P Capital IQ wanted to see revenue of $1.36 billion on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $1.28 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 $1.06. The 19 earnings estimates compiled by S&P Capital IQ forecast $1.00 per share. GAAP EPS of $1.00 for Q1 were 52% lower than the prior-year quarter's $2.07 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 34.3%, 30 basis points better than the prior-year quarter. Operating margin was 14.0%, 30 basis points worse than the prior-year quarter. Net margin was 11.4%, 1,570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $5.77 billion. The average EPS estimate is $4.33.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 169 members rating the stock outperform and 18 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Cooper Industries a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cooper Industries is outperform, with an average price target of $64.71.
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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.