The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Pall beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped. GAAP earnings per share dropped.
Gross margins dropped, operating margins were steady, net margins dropped.
Pall reported revenue of $662.5 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $634.3 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 $0.73. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.67 per share. Non-GAAP EPS of $0.73 for Q2 were 3.9% lower than the prior-year quarter's $0.76 per share. (The prior-year quarter included $0.09 per share in earnings from discontinued operations.) GAAP EPS of $0.67 for Q2 were 6.9% lower than the prior-year quarter's $0.72 per share. (The prior-year quarter included $0.09 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 51.6%, 120 basis points worse than the prior-year quarter. Operating margin was 17.0%, much about the same as the prior-year quarter. Net margin was 11.6%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $667.7 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $2.70 billion. The average EPS estimate is $3.07.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 132 members out of 155 rating the stock outperform, and 23 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Pall a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pall is hold, with an average price target of $63.10.
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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.