The 10-second takeaway
For the quarter ended June 30 (Q2), SPX missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins dropped, net margins grew.
SPX notched revenue of $1.26 billion. The nine analysts polled by S&P Capital IQ predicted a top line of $1.30 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.14 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 $0.78. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.79 per share. GAAP EPS of $0.93 for Q2 were 41% higher than the prior-year quarter's $0.66 per share. (The prior-year quarter included $0.19 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.8%, 90 basis points worse than the prior-year quarter. Operating margin was 6.2%, 60 basis points worse than the prior-year quarter. Net margin was 3.8%, 80 basis points better 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 $1.11.
Next year's average estimate for revenue is $5.13 billion. The average EPS estimate is $3.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 178 rating the stock outperform, and 12 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 $82.43.
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