The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ABB met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.
Margins shrank across the board.
ABB reported revenue of $9.75 billion. The 22 analysts polled by S&P Capital IQ expected revenue of $9.82 billion on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $9.34 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 $0.33. The three earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. GAAP EPS of $0.33 for Q3 were 2.9% lower than the prior-year quarter's $0.34 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 30.0%, 50 basis points worse than the prior-year quarter. Operating margin was 11.8%, 100 basis points worse than the prior-year quarter. Net margin was 7.8%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.22 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $39.72 billion. The average EPS estimate is $1.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,769 members out of 1,813 rating the stock outperform, and 44 members rating it underperform. Among 322 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 313 give ABB a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ABB is outperform, with an average price target of $22.15.
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