How the Wheels Came Off Pall's Bus
Pall (NYS: PLL) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q3), Pall missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Gross margins expanded, operating margins dropped, and et margins grew.
Pall tallied revenue of $658.0 million. The seven analysts polled by S&P Capital IQ wanted to see a top line of $717.3 million on the same basis. GAAP reported sales were 7.3% lower than the prior-year quarter's $709.8 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 $0.70. The nine earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. GAAP EPS of $0.67 for Q3 were 12% higher than the prior-year quarter's $0.60 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 50.8%, 90 basis points better than the prior-year quarter. Operating margin was 15.0%, 240 basis points worse than the prior-year quarter. Net margin was 12.0%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $778.8 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $2.92 billion. The average EPS estimate is $3.16.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 135 members rating the stock outperform and 22 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Pall a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pall is hold, with an average price target of $59.20.
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At the time this article 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. 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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