The 10-second takeaway
For the quarter ended April 30 (Q3), Pall missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Gross margins expanded, operating margins dropped, and et margins grew.
Pall tallied revenue of $658.0 million. The seven analysts polled by S&P Capital IQ wanted to see a top line of $717.3 million on the same basis. GAAP reported sales were 7.3% lower than the prior-year quarter's $709.8 million.
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 $0.70. The nine earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. GAAP EPS of $0.67 for Q3 were 12% higher than the prior-year quarter's $0.60 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 50.8%, 90 basis points better than the prior-year quarter. Operating margin was 15.0%, 240 basis points worse than the prior-year quarter. Net margin was 12.0%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $778.8 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $2.92 billion. The average EPS estimate is $3.16.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 135 members rating the stock outperform and 22 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Pall a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pall is hold, with an average price target of $59.20.
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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.