Cooper Industries plc. Earnings: Profits Climb By Double Figures Again

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

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Cooper Industries plc Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the conglomerate rose to $159.9 million ($1 per share) vs. $141.9 million (85 cents per share) in the same quarter a year earlier. This marks a rise of 12.7% from the year earlier quarter.

Revenue: Rose 9% to $1.37 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CBE beat the mean analyst estimate of 95 cents per share. Analysts were expecting revenue of $1.35 billion.

Quoting Management: “Our Company-wide strategic initiatives and proven business model now have delivered eight quarters of double-digit earnings per share growth. Our new product vitality, which represents revenues from sales of products developed in the last three years, was a record 29% of total revenue and our percentage of sales derived from outside the United States reached a record 40%. Our longer cycle and international businesses produced solid results in the face of macro uncertainty, while demand from non-residential and residential construction markets remains stable,” 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 third quarter, net income rose 13.1% and in the second quarter, the figure rose more than threefold.

Gross margin shrank 0.9 percentage point to 32.2%. The contraction appeared to be driven by increased costs, which rose 10.4% from the year earlier quarter while revenue rose 9%.

Revenue has risen the past four quarters. Revenue increased 12% to $1.39 billion in the third quarter. The figure rose 2.4% in the second quarter from the year earlier and climbed 4% in the first quarter from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the third quarter and by one cent in the second quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from 99 cents per share to 97 cents. The average estimate hasn’t changed from $3.81 per share for the fiscal year.

Competitors to Watch: Acuity Brands, Inc. (NYSE:AYI), TE Connectivity Ltd. (NYSE:TEL), Thomas & Betts Corporation (NYSE:TNB), Dover Corporation (NYSE:DOV), Orion Energy Systems, Inc. (NYSE:OESX), Danaher Corporation (NYSE:DHR), Nexxus Lighting, Inc. (NASDAQ:NEXS), and Littelfuse, Inc. (NASDAQ:LFUS).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com