The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ABB met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins contracted across the board.
ABB chalked up revenue of $11.02 billion. The 18 analysts polled by S&P Capital IQ looked for a top line of $10.97 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.26. The four earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. GAAP EPS of $0.26 for Q4 were 28% lower than the prior-year quarter's $0.36 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 26.5%, 340 basis points worse than the prior-year quarter. Operating margin was 7.8%, 470 basis points worse than the prior-year quarter. Net margin was 5.5%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $9.58 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $41.35 billion. The average EPS estimate is $1.58.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,748 members out of 1,793 rating the stock outperform, and 45 members rating it underperform. Among 332 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 324 give ABB a green thumbs-up, and eight 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 $21.82.
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