The 10-second takeaway
For the quarter ended March 31 (Q4), Precision Castparts missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins contracted.
Precision Castparts logged revenue of $2.44 billion. The 17 analysts polled by S&P Capital IQ predicted revenue of $2.49 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $1.93 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 $2.82. The 20 earnings estimates compiled by S&P Capital IQ anticipated $2.75 per share. Non-GAAP EPS of $2.82 for Q4 were 24% higher than the prior-year quarter's $2.28 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.) GAAP EPS of $2.81 for Q4 were 22% higher than the prior-year quarter's $2.30 per share. (The prior-year quarter included -$0.04 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 32.3%, 30 basis points better than the prior-year quarter. Operating margin was 25.7%, 30 basis points worse than the prior-year quarter. Net margin was 17.0%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.53 billion. On the bottom line, the average EPS estimate is $2.83.
Next year's average estimate for revenue is $10.50 billion. The average EPS estimate is $12.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,287 members out of 1,318 rating the stock outperform, and 31 members rating it underperform. Among 380 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 376 give Precision Castparts a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Precision Castparts is outperform, with an average price target of $218.17.
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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 recommends Precision Castparts. 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.