Precision Castparts Corp Earnings: Margins Expand with Strong Revenues, Profit Increases

The Cheat Sheet

S&P 500 component PRECISION CASTPARTS CORP reported its results for the first quarter. Precision Castparts Corp. manufactures complex metal components and products and provides investment castings, forgings and fasteners/fastener systems for aerospace and industrial gas turbine applications.

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

PRECISION CASTPARTS Earnings Cheat Sheet for the First Quarter

Results: Net income for the metal fabrication company rose to $286 million ($1.97 per share) vs. $235 million ($1.64 per share) in the same quarter a year earlier. This marks a rise of 21.7% from the year earlier quarter.

Revenue: Rose 15.8% to $1.68 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PCP beat the mean analyst estimate of $1.95 per share. Analysts were expecting revenue of $1.68 billion.

Quoting Management: “The momentum continues to build in our casting and forging operations, and, before the year is out, we are convinced that will be the case in our aerospace fastener businesses as well,” said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. “Aerospace orders in Investment Cast Products and Forged Products are being spurred by the increased commercial build rates in the base programs, as well as market share gains we’ve achieved over the past year or so. In addition, these segments are now very definitely seeing the demand for 787 airframe and engine components, and those shipments should grow steadily into the second half of the fiscal year. Fastener orders are lagging, as inventories get exhausted in the supply chain; however, many of our major customers have begun to schedule increased orders for our core products, with delivery beginning in the second half of this fiscal year.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 12.4% and in the third quarter of the last fiscal year, the figure rose 10.1%.

Revenue has risen the past four quarters. Revenue increased 16.4% to $1.67 billion in the fourth quarter of the last fiscal year. The figure rose 15.8% in the third quarter of the last fiscal year from the year earlier and climbed 15.8% in the second quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of $1.87 versus a mean estimate of net income of $1.91 per share.

Competitors to Watch: MS International plc , Ladish Co., Inc. , Alcoa Inc. , Haynes International, Inc. , Allegheny Tech. Inc. , Chicago Rivet & Machine Co. , United Technologies Corp. .

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

(Source: Xignite Financials)

View Comments (0)