The 10-second takeaway
For the quarter ended March 31 (Q1), Lufkin Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins grew.
Lufkin Industries tallied revenue of $318.0 million. The seven analysts polled by S&P Capital IQ hoped for net sales of $306.8 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $279.5 million.
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 $0.56. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.56 for Q1 were 65% higher than the prior-year quarter's $0.34 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 22.7%, 150 basis points worse than the prior-year quarter. Operating margin was 9.4%, 180 basis points worse than the prior-year quarter. Net margin was 6.0%, 210 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $351.3 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $3.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 576 members out of 599 rating the stock outperform, and 23 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give Lufkin Industries 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 Lufkin Industries is hold, with an average price target of $70.38.
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