PRECISION CASTPARTS CORP Earnings: Profits Grow by Double Digits For Fifth Straight Quarter

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

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PRECISION CASTPARTS CORP Earnings Cheat Sheet

Results: Net income for PRECISION CASTPARTS CORP rose to $341.7 million ($2.33 per share) vs. $286 million ($1.97 per share) in the same quarter a year earlier. This marks a rise of 19.5% from the year-earlier quarter.

Revenue: Rose 17.6% to $1.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PRECISION CASTPARTS CORP fell short of the mean analyst estimate of $2.36 per share. It fell short of the average revenue estimate of $2.01 billion.

Quoting Management: “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.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 16.3%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 18.7% from the year earlier quarter.

Last quarter, the company’s gross margin expanded 0.9 percentage point from the year-earlier quarter to 32.3%. It was the fifth consecutive quarter of gross-margin growth. In this period, margins have grown an average of 0.9 percentage point per quarter on a year-over-year basis.

The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose 24% and in the third quarter of the last fiscal year, the figure rose 19.8%.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $2.28 versus a mean estimate of net income of $2.27 per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is $2.43 per share, up from $2.42 ninety days ago. For the fiscal year, the average estimate has moved up from $9.98 a share to $10.10 over the last ninety days.

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

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