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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