The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Precision Castparts missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Margins increased across the board.
Precision Castparts reported revenue of $1.93 billion. The 16 analysts polled by S&P Capital IQ expected a top line of $2.01 billion on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $1.79 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 $2.28. The 20 earnings estimates compiled by S&P Capital IQ predicted $2.34 per share. GAAP EPS of $2.28 for Q2 were 12% higher than the prior-year quarter's $2.03 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 32.1%, 140 basis points better than the prior-year quarter. Operating margin was 25.8%, 140 basis points better than the prior-year quarter. Net margin was 17.2%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.17 billion. On the bottom line, the average EPS estimate is $2.59.
Next year's average estimate for revenue is $8.44 billion. The average EPS estimate is $10.07.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,270 members out of 1,301 rating the stock outperform, and 31 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 358 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 $188.89.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Precision Castparts. 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.