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PRECISION CASTPARTS First Quarter Earnings
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PCP
PRECISION CASTPARTS (NYSE:PCP) announced its results for the first quarter on July 26, 2012. Precision Castparts manufactures complex metal components and products and provides investment castings, forgings, and fastener systems for aerospace and industrial gas turbine applications.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: PRECISION CASTPARTS missed estimates with $2.33 per share and revenues of $1.97 billion. Analysts were expecting $2.36 per share and revenues of $2.01 billion. EPS rose 18.3% while revenue climbed 17.6% from the same period last year. PRECISION CASTPARTS has averaged revenue growth of 16.3% over the past five quarters. For the first quarter, the company reported net income of $341.7 million, up 19.5% from the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "Our aerospace and power end markets look very solid right now, and, based on what has been announced by our customers and new opportunities we see over the next few years, our growth will continue upward at a steady pace," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "On the aerospace front, the main drivers will be increased narrow-body and wide-body aircraft deliveries and higher 787 build rates. All of our segments are now building airframe and engine components relatively in sync with current base production, and Fastener Products orders for the 787 program are gradually aligning with build rates."
A Look Back: Net income has increased 20.5% year-over-year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed 24% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter performance are higher than they were 90 days ago. Over the past three months, the average estimate for the second quarter has risen to $2.43 per share from $2.42. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $10.10 per share, a rise from $9.98 90 days ago.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: PRECISION CASTPARTS missed estimates with $2.33 per share and revenues of $1.97 billion. Analysts were expecting $2.36 per share and revenues of $2.01 billion. EPS rose 18.3% while revenue climbed 17.6% from the same period last year. PRECISION CASTPARTS has averaged revenue growth of 16.3% over the past five quarters. For the first quarter, the company reported net income of $341.7 million, up 19.5% from the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "Our aerospace and power end markets look very solid right now, and, based on what has been announced by our customers and new opportunities we see over the next few years, our growth will continue upward at a steady pace," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "On the aerospace front, the main drivers will be increased narrow-body and wide-body aircraft deliveries and higher 787 build rates. All of our segments are now building airframe and engine components relatively in sync with current base production, and Fastener Products orders for the 787 program are gradually aligning with build rates."
A Look Back: Net income has increased 20.5% year-over-year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed 24% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter performance are higher than they were 90 days ago. Over the past three months, the average estimate for the second quarter has risen to $2.43 per share from $2.42. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $10.10 per share, a rise from $9.98 90 days ago.
by
Investopedia Staff
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