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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