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.
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