The 10-second takeaway
For the quarter ended March 31 (Q1), ABB beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share dropped.
Margins shrank across the board.
ABB logged revenue of $9.72 billion. The 20 analysts polled by S&P Capital IQ expected to see sales of $9.54 billion on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $8.91 billion.
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 $0.29. The four earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.29 for Q1 were 3.3% lower than the prior-year quarter's $0.30 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 29.3%, 90 basis points worse than the prior-year quarter. Operating margin was 10.7%, 90 basis points worse than the prior-year quarter. Net margin was 6.8%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.27 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $41.49 billion. The average EPS estimate is $1.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,738 members out of 1,785 rating the stock outperform, and 47 members rating it underperform. Among 288 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 281 give ABB a green thumbs-up, and seven 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 $24.60.
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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 owns shares of Abbey Protection. 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.