Pall Corp Earnings: Keeping the Profitability Streak Alive

The Cheat Sheet

S&P 500 component Pall Corporation reported its results for the second quarter. Pall supplies filtration, separation, and purification technologies for the removal of contaminants from a variety of liquids and gases.

Investing Insights: Warren Buffett Trashes Gold, But What About Silver?

Pall Earnings Cheat Sheet for the Second Quarter

Results: Net income for the diversified machinery company rose to $84.7 million (72 cents per share) vs. $75.7 million (64 cents per share) in the same quarter a year earlier. This marks a rise of 12% from the year-earlier quarter.

Revenue: Rose 8.2% to $698 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pall Corporation reported adjusted net income of 76 cents per share. By that measure, the company beat the mean estimate of 74 cents per share. Analysts were expecting revenue of $684.6 million.

Quoting Management: Larry Kingsley, president and CEO, said, “The sales increase in the quarter reflects good growth in both the Life Sciences and Industrial segments. On a global basis, emerging market sales grew over 20% in local currency driven by the Energy markets in MENA and Latin America. We continue to invest to grow in the emerging markets which represented about 20% of second quarter sales compared to about 17% a year ago.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 16.5% to $705.6 million in the first quarter. The figure rose 15% in the fourth quarter of the last fiscal year from the year earlier and climbed 15.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 74 cents versus a mean estimate of net income of 65 cents per share.

Net income has increased 28.2% 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 77.2% from the year-earlier quarter.

The company’s cost of sales rose to 48.4% of revenue, just 8% from the year-earlier quarter.

Looking Forward: The average estimate for the third quarter remains unchanged at 82 cents a share. For the fiscal year, the average estimate has moved up from $3.14 a share to $3.22 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Will the Gold and Silver Smackdown Deter Investors?

Here are the Hottest iPad Rumors You Hope Are True

Does Admiration Lead to Higher Stock Returns?

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

View Comments (0)