The 10-second takeaway
For the quarter ended June 30 (Q1), Precision Castparts missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
Precision Castparts reported revenue of $2.37 billion. The 18 analysts polled by S&P Capital IQ expected revenue of $2.52 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $1.97 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 $2.88. The 23 earnings estimates compiled by S&P Capital IQ predicted $2.90 per share. Non-GAAP EPS of $2.88 for Q1 were 23% higher than the prior-year quarter's $2.35 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $2.96 for Q1 were 27% higher than the prior-year quarter's $2.33 per share. (The prior-year quarter included -$0.01 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 33.7%, 140 basis points better than the prior-year quarter. Operating margin was 27.2%, 100 basis points better than the prior-year quarter. Net margin was 18.4%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.49 billion. On the bottom line, the average EPS estimate is $2.88.
Next year's average estimate for revenue is $10.35 billion. The average EPS estimate is $12.27.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,290 members out of 1,323 rating the stock outperform, and 33 members rating it underperform. Among 397 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 392 give Precision Castparts a green thumbs-up, and five 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 $240.09.
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