The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Praxair missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew slightly.
Margins grew across the board.
Praxair reported revenue of $2.77 billion. The 13 analysts polled by S&P Capital IQ wanted to see revenue of $2.84 billion on the same basis. GAAP reported sales were 4.2% lower than the prior-year quarter's $2.90 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 $1.39. The 17 earnings estimates compiled by S&P Capital IQ forecast $1.39 per share. GAAP EPS of $1.43 for Q3 were 2.1% higher than the prior-year quarter's $1.40 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 42.5%, 60 basis points better than the prior-year quarter. Operating margin was 22.5%, 100 basis points better than the prior-year quarter. Net margin was 15.5%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.83 billion. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $11.34 billion. The average EPS estimate is $5.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 670 members out of 696 rating the stock outperform, and 26 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Praxair 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 Praxair is outperform, with an average price target of $117.28.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Praxair. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Praxair 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. 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.