Precision Castparts Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

Precision Castparts (NYS: PCP) reported earnings on Thursday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q4), Precision Castparts met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
Precision Castparts booked revenue of $1.95 billion. The 17 analysts polled by S&P Capital IQ anticipated revenue of $1.94 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.67 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.28. The 21 earnings estimates compiled by S&P Capital IQ averaged $2.27 per share. GAAP EPS of $2.29 for Q4 were 22% higher than the prior-year quarter's $1.87 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.7%, 220 basis points better than the prior-year quarter. Operating margin was 25.5%, 150 basis points better than the prior-year quarter. Net margin was 17.2%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $2.35.

Next year's average estimate for revenue is $8.42 billion. The average EPS estimate is $10.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,280 members rating the stock outperform and 31 members rating it underperform. Among 369 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 365 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 $186.70.

At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of 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.

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