PRECISION CASTPARTS Sees Net Income Climb

PRECISION CASTPARTS (NYSE: PCP) announced its results for the second quarter on October 27, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
PRECISION CASTPARTS posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported EPS of $2.03/share versus the $2.04/share estimate and revenues of $1.79 billion versus the $1.77 billion estimate. EPS rose 16% while revenue climbed 18.7% from the same period last year.
Last quarter marked the third in a row of rising net income. PRECISION CASTPARTS has averaged revenue growth of 16.5% over the past five quarters.

Income:
For the year, PRECISION CASTPARTS reported net income of $7.67/share. The company fell short of analysts' projections of $7.71/share. According to the reported number, the company's income rose 17.4% from last year's levels.

Conference Call:
The conference call for second quarter earnings can be accessed here.

Official Comment:
"Right now, all the signposts in our businesses are pointed in the right direction, toward increasing sales and improving profitability," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "The announced increases in the commercial aircraft build rates are beginning to work into our casting and forging delivery schedules and start to ramp up in the latter half of the year. Of course, the most significant catalyst to our commercial aerospace growth is the 787 program, and we will support Boeing schedules as they firm up. In order to get ahead of this growth, we have started to hire in some of our operations and are pulling forward some capital investment, particularly in our airfoils business, which we had not anticipated adding for another year. The fastener business continues to lag this aerospace recovery; the bottom is definitely behind us, however, and the order books are gaining steady traction over the next three to four quarters."

Industry:
PRECISION CASTPARTS is in the metal procurement and fabrication industry. That industry is currently enjoying price/earnings growth of 1.2%.

What to Do Next:
That's it -- now you have all the facts to help you decide whether to buy, sell or hang onto your PRECISION CASTPARTS shares. And don't forget to check in with us before next earnings season for a full preview of the company's next release.

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