Portland, Oregon-based Precision Castparts Corp. (PCP) is a prominent metal fabrication company, conducting trade in the global industrial goods sector. The company produces and sells metal products and components across several economies around the world. Its marketing initiatives are primarily driven by autonomous sales representatives and network distributors. The company shares high brand value in the market but is also exposed to certain risks of external market uncertainties.
This is especially true given the recent earnings estimate revisions for PCP, as the consensus estimate has moved down in the last few months. In the last four trailing quarters, PCP has reported a negative average earnings surprise of 3.04%, beating the estimate only once.
Currently, PCP has a Zacks Rank#4 (Sell) but that could change following its third quarter 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: PCP beat on earnings. Adjusted Earnings per share came in at $3.09, marginally higher than the Zacks Consensus Estimate of $3.08.
Revenue: Revenues of $2459 million came below the Zacks Consensus Estimate of $2515 million.
Key Stats: Operating margin of the company faced a year over year decline of 80 basis points. The decline was primarily driven by the fall in operating margin of PCP’s Forged Products business segment. PCP expects that the current downturn in business due to lower demand from oil & gas end markets and an extended equipment upgrade will likely be offset by an improvement in Aerospace business in the forthcoming quarters.
Stock Price: Shares prices did not show any movement in the pre-market trading session.
Check back later for our full write up on this PCP earnings report later!
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