Precision Castparts Corp.'s (NYSE: PCP )
earnings came in a little lighter than expected, but investors might
not want to panic just yet. Any company involved in the production of
heavy capital goods is likely to see some lumpiness in its revenue and
earnings from quarter to quarter -- and so it was with Precision
Castparts' second quarter.
A brief recap:
So it's an earnings "miss," and the market did what the market usually does in such cases: It promptly marked the stock down yesterday, on an otherwise strong day for the S&P 500.
However, as noted above, Precision Castparts is always going to be a business with a degree of uncertainty around the level of its earnings from quarter to quarter. Indeed, CEO Mark Donegan further alluded to this fact in his commentary on the outlook for the upcoming third quarter.
READ THE FULL EQUITY RESEARCH ARTICLE LINKED
Source: Precision Castparts.
Earnings highlights
A brief recap:
-
Q2 revenue of $2.52 billion versus analyst estimates of $2.52 billion
-
Q2 earnings per share of $3.24 versus analyst estimates of $3.32
So it's an earnings "miss," and the market did what the market usually does in such cases: It promptly marked the stock down yesterday, on an otherwise strong day for the S&P 500.
However, as noted above, Precision Castparts is always going to be a business with a degree of uncertainty around the level of its earnings from quarter to quarter. Indeed, CEO Mark Donegan further alluded to this fact in his commentary on the outlook for the upcoming third quarter.
READ THE FULL EQUITY RESEARCH ARTICLE LINKED
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