Cooper Industries Earnings Cheat Sheet: Tops Analyst Estimates

Cooper Industries, plc. (NASDAQ:CBE) reported net income above Wall Street’s expectations for the first quarter. Cooper Industries PLC is a worldwide manufacturer of electrical products and tools.

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Cooper Industries, plc Earnings Cheat Sheet for the First Quarter

Results: Net income for Cooper Industries, plc. rose to $346.1 million ($2.07/share) vs. $118.6 million (70 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose 4% to $1.28 billion YoY.

Actual vs. Wall St. Expectations: CBE beat the mean analyst estimate of 84 cents/share. Estimates ranged from 80 cents per share to 86 cents per share.

Quoting Management: “We are very pleased to report record earnings and core revenue growth for the combined Electrical Segments. This is the second consecutive quarter where Cooper has reported record core growth as the utility markets snapped back sharply, our industrial markets remained strong, and demand for energy-efficient technologies such as LED lighting gained additional momentum. During the quarter we invested in new product development and global initiatives which, although moderating incremental margins, should result in continued future growth opportunities. As expected, commodity cost pressures were not fully offset by pricing actions taken during the first quarter but we expect to see this reverse as we move through the balance of 2011,” said Cooper Industries’ Chairman and Chief Executive Officer Kirk S. Hachigian.

Key Stats: The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 10.2% and in the third quarter of the last fiscal year, the figure rose 17.2%.

Gross margins grew 0.8 percentage point to 34%. The growth seemed to be driven by increased revenue, as the figure rose 4% from the year earlier quarter while costs rose 2.8%.

Over the last five quarters, revenue has increased 0.7% on average year over year. The biggest increase came in the second quarter of the last fiscal year, when revenue rose 5.3% from the year earlier quarter.

Competitors to Watch: Acuity Brands, Inc. (NYSE:AYI), Thomas & Betts Corporation (NYSE:TNB), Dover Corporation (NYSE:DOV), Orion Energy Systems Inc. (NYSE:OESX), Nexxus Lighting, Inc. (NASDAQ:NEXS), Littelfuse, Inc. (NASDAQ:LFUS), Actuant Corporation (NYSE:ATU), 3M (NYSE:MMM), Danaher (NYSE:DHR) and United Technologies Corp. (NYSE:UTX).

Today’s Performance: Shares of CBE are trading at $66.80 as of April 25, 2011 at 8:58 AM ET, up .59% from the previous close.


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