The 10-second takeaway
For the quarter ended June 30 (Q2), Praxair met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share increased.
Gross margins grew, operating margins dropped, net margins shrank.
Praxair logged revenue of $3.01 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $3.00 billion on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $2.81 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 $1.49. The 20 earnings estimates compiled by S&P Capital IQ anticipated $1.48 per share. GAAP EPS of $1.49 for Q2 were 4.9% higher than the prior-year quarter's $1.42 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 43.3%, 30 basis points better than the prior-year quarter. Operating margin was 22.1%, 60 basis points worse than the prior-year quarter. Net margin was 14.8%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $1.54.
Next year's average estimate for revenue is $11.96 billion. The average EPS estimate is $5.95.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 677 members out of 702 rating the stock outperform, and 25 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 give Praxair 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 Praxair is outperform, with an average price target of $124.44.
Looking for alternatives to Praxair? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Praxair to My Watchlist.
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 has no position in any of the stocks mentioned. 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.