Esterline Technologies Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Esterline Technologies (NYS: ESL) reported earnings on Dec. 6. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Oct. 26 (Q4), Esterline Technologies met expectations on revenues and crushed expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
 Esterline Technologies reported revenue of $530.7 million. The nine analysts polled by S&P Capital IQ expected to see sales of $526.0 million on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $502.4 million.

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 $2.17. The eight earnings estimates compiled by S&P Capital IQ averaged $1.63 per share. GAAP EPS of $1.97 for Q4 were 218% higher than the prior-year quarter's $0.62 per share.

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 38.5%, 140 basis points better than the prior-year quarter. Operating margin was 15.5%, 210 basis points better than the prior-year quarter. Net margin was 11.6%, 770 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $480.8 million. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $5.65.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 150 members out of 158 rating the stock outperform, and eight members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Esterline Technologies 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 Esterline Technologies is outperform, with an average price target of $70.25.

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The article Esterline Technologies Crushes Earnings Estimates originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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