Pall Corp. Earnings Cheat Sheet: Falls Short of Analyst Estimates

S&P 500 (NYSE:SPY) component Pall Corporation (NYSE:PLL) reported its results for the third quarter. Pall supplies filtration, separation, and purification technologies for the removal of contaminants from a variety of liquids and gases.

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Pall Corporation Earnings Cheat Sheet

Results: Net income for Pall Corporation rose to $78.9 million (67 cents per share) vs. $71.1 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 11% from the year-earlier quarter.

Revenue: Rose 0.6% to $658 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pall Corporation reported adjusted net income of 70 cents per share. By that measure, the company fell short of mean estimate of 79 cents per share. It fell short of the average revenue estimate of $725.2 million.

Quoting Management: Larry Kingsley, President and CEO, said, “It was a difficult quarter, especially as the Eurozone struggled and our previously announced “global go-live” ERP transition disrupted our supply chain more than anticipated. As a result of this temporary disruption, certain shipments of high margin consumables were delayed and we incurred substantial additional costs to take care of our customers. The ERP transition issues are being resolved and we are making good progress in filling past due orders. We expect to have caught up with backorders by this August, which is the beginning of our FY ’13, and we are grateful for the continued patience and support of our customers.” Noting that consumables orders increased over 3% in Life Sciences, with double digit growth in the Pharmaceutical market and low single digits in Food and Beverage, Kingsley said, “Unrelated to the temporary operational challenges in the quarter, we experienced relatively soft industrial orders in all geographies, with consumables down 8%. While the Americas order rate is strengthening in most end markets, Europe remains weak and we are taking appropriate cost actions to mitigate potential impact on FY ’13 profitability.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by 9 cents.

Net income has increased 19.9% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 77.2% from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 93 cents per share to 88 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $3.16 per share, down from $3.21 ninety days ago.

Competitors to Watch: Nordson Corporation, General Electric Company, CLARCOR Inc., 3M Company, Donaldson Company, Inc., Thermo Fisher Scientific Inc., Danaher Corporation, Parker-Hannifin Corp., Teleflex Incorporated, and Flow International Corp.

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

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