The 10-second takeaway
For the quarter ended July 27 (Q3), Esterline Technologies met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted to a loss.
Gross margins grew, operating margins dropped, net margins contracted.
Esterline Technologies chalked up revenue of $485.9 million. The eight analysts polled by S&P Capital IQ expected revenue of $489.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $409.5 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 $1.12. The six earnings estimates compiled by S&P Capital IQ averaged $1.11 per share. GAAP EPS were -$0.55 for Q3 versus $1.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 30 basis points better than the prior-year quarter. Operating margin was 11.2%, 110 basis points worse than the prior-year quarter. Net margin was -3.5%, 1,270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $528.7 million. On the bottom line, the average EPS estimate is $1.60.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $4.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 151 members out of 158 rating the stock outperform, and seven members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Esterline Technologies a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Esterline Technologies is outperform, with an average price target of $76.00.
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