What Does Wall Street See for Precision Castparts's Q2?

Checking expectations

Precision Castparts (NYSE: PCP) is expected to report Q2 earnings on Oct. 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Precision Castparts's revenues will grow 12.5% and EPS will increase 15.3%.

The average estimate for revenue is $2.01 billion. On the bottom line, the average EPS estimate is $2.34.

Revenue details
Last quarter, Precision Castparts tallied revenue of $1.97 billion. GAAP reported sales were 18% higher than the prior-year quarter's $1.68 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $2.35. GAAP EPS of $2.33 for Q1 were 18% higher than the prior-year quarter's $1.97 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 32.3%, 100 basis points better than the prior-year quarter. Operating margin was 26.2%, 120 basis points better than the prior-year quarter. Net margin was 17.3%, 20 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.44 billion. The average EPS estimate is $10.07.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,269 members out of 1,300 rating the stock outperform, and 31 members rating it underperform. Among 357 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 353 give Precision Castparts 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 Precision Castparts is outperform, with an average price target of $189.58.

Add Precision Castparts to My Watchlist.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Precision Castparts. 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.

Stocks Mentioned

Precision Castparts Corp.

PCP.DL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.