The 10-second takeaway
For the quarter ended Jan. 25 (Q1), Esterline Technologies missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped. GAAP earnings per share increased.
Margins grew across the board.
Esterline Technologies reported revenue of $458.0 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $465.8 million 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 $0.91. The eight earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. Non-GAAP EPS of $0.91 for Q1 were 7.1% lower than the prior-year quarter's $0.98 per share. GAAP EPS of $0.80 for Q1 were 9.6% higher than the prior-year quarter's $0.73 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 35.0%, 140 basis points better than the prior-year quarter. Operating margin was 8.4%, 50 basis points better than the prior-year quarter. Net margin was 5.5%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $515.1 million. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $5.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 150 members out of 157 rating the stock outperform, and seven members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Esterline Technologies a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Esterline Technologies is outperform, with an average price target of $72.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.