The 10-second takeaway
For the quarter ended March 30 (Q1), SPX missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins were steady, net margins dropped.
SPX reported revenue of $1.13 billion. The 12 analysts polled by S&P Capital IQ expected sales of $1.20 billion 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 $0.26. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. Non-GAAP EPS of $0.26 for Q1 were 13% higher than the prior-year quarter's $0.23 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.) GAAP EPS of $0.04 for Q1 were 85% lower than the prior-year quarter's $0.27 per share. (The prior-year quarter included $0.10 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 26.6%, 20 basis points better than the prior-year quarter. Operating margin was 2.2%, much about the same as the prior-year quarter. Net margin was 0.2%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $5.26 billion. The average EPS estimate is $4.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 171 members out of 183 rating the stock outperform, and 12 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give SPX 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 SPX is outperform, with an average price target of $85.25.
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