The 10-second takeaway
For the quarter ended Dec. 30 (Q3), Precision Castparts missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins grew, operating margins grew, net margins dropped.
Precision Castparts notched revenue of $2.04 billion. The 14 analysts polled by S&P Capital IQ predicted sales of $2.10 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.82 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 $2.40. The 20 earnings estimates compiled by S&P Capital IQ predicted $2.47 per share. GAAP EPS of $2.31 for Q3 were 9.5% higher than the prior-year quarter's $2.11 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 32.1%, 60 basis points better than the prior-year quarter. Operating margin was 25.5%, 20 basis points better than the prior-year quarter. Net margin was 16.5%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.46 billion. On the bottom line, the average EPS estimate is $2.84.
Next year's average estimate for revenue is $8.46 billion. The average EPS estimate is $9.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,279 members out of 1,310 rating the stock outperform, and 31 members rating it underperform. Among 390 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 387 give Precision Castparts 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 Precision Castparts is outperform, with an average price target of $198.11.
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