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Praxair Third Quarter Earnings
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PX
Praxair (NYSE:PX) announced its results for the third quarter on October 24, 2012. Praxair produces and sells atmospheric, process and specialty gases, and high-performance surface coatings to industrial clients.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports
The Numbers: Praxair's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported $1.43 per share versus the $1.39 per share estimate and revenues of $2.77 billion versus the $2.93 billion estimate. EPS rose 2.1% while revenue declined 4.2% from the same period last year. Revenue declined last quarter after shrinking 1.6% to $2.81 billion in the second quarter. The company's income has remained about on par with last year's levels. Last quarter marked the third in a row of rising net income.
Management Quote: Commenting on the financial results and business outlook, chairman, president and chief executive officer Steve Angel said, "Praxair's relentless focus on operational excellence, project execution and financial discipline will continue to deliver increasing cash flow and earnings per share for our shareholders.While we are expecting that macro-economic conditions overall may continue to weaken in the near-term, we will continue to drive long-term growth through our strategy of focusing on energy, environmental and emerging markets opportunities."
A Look Back: Net income has increased 47.2% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than threefold from the year-earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.44 per share, down from $1.48 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $5.64 per share, down from $5.67 90 days ago.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports
The Numbers: Praxair's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported $1.43 per share versus the $1.39 per share estimate and revenues of $2.77 billion versus the $2.93 billion estimate. EPS rose 2.1% while revenue declined 4.2% from the same period last year. Revenue declined last quarter after shrinking 1.6% to $2.81 billion in the second quarter. The company's income has remained about on par with last year's levels. Last quarter marked the third in a row of rising net income.
Management Quote: Commenting on the financial results and business outlook, chairman, president and chief executive officer Steve Angel said, "Praxair's relentless focus on operational excellence, project execution and financial discipline will continue to deliver increasing cash flow and earnings per share for our shareholders.While we are expecting that macro-economic conditions overall may continue to weaken in the near-term, we will continue to drive long-term growth through our strategy of focusing on energy, environmental and emerging markets opportunities."
A Look Back: Net income has increased 47.2% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than threefold from the year-earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.44 per share, down from $1.48 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $5.64 per share, down from $5.67 90 days ago.
by
Investopedia Staff
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