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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