The 10-second takeaway
For the quarter ended Sep. 29 (Q3), SPX missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted.
Gross margins dropped, operating margins dropped, net margins grew.
SPX reported revenue of $1.25 billion. The 10 analysts polled by S&P Capital IQ predicted a top line of $1.30 billion on the same basis. GAAP reported sales were 9.9% lower than the prior-year quarter's $1.39 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 $1.06. The 15 earnings estimates compiled by S&P Capital IQ averaged $1.09 per share. GAAP EPS of $1.16 for Q3 were 3.3% lower than the prior-year quarter's $1.20 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.0%, 120 basis points worse than the prior-year quarter. Operating margin was 7.4%, 90 basis points worse than the prior-year quarter. Net margin was 4.6%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.41 billion. On the bottom line, the average EPS estimate is $1.91.
Next year's average estimate for revenue is $5.13 billion. The average EPS estimate is $3.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 164 members out of 176 rating the stock outperform, and 12 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give SPX 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 SPX is outperform, with an average price target of $77.47.
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