Pall Corp. Earnings: Tops Analysts’ Expectations

S&P 500 (NYSE:SPY) component Pall Corporation (NYSE:PLL) reported net income above Wall Street’s expectations for the first 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 $339.5 million ($2.92 per share) vs. $69.5 million (59 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year-earlier quarter.

Revenue: Fell 3.6% to $627.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pall Corporation beat the mean analyst estimate of 66 cents per share. It fell short of the average revenue estimate of $725.2 million.

Quoting Management: Larry Kingsley, Pall President and CEO, said, “The first quarter proved to be challenging due to order cancellations and a reduction in customer volume commitment, particularly in three of our industrial global end markets. The emerging country markets are taking a more cautious approach to industrial capital commitment. Our more resilient Life Sciences business held up well driven by 8% growth in the BioPharmaceuticals markets. The team responded well to the situation and is managing to achieve reasonable profitability given the soft industrial segment demand. Structural cost improvement and product rationalization is enabling us to improve margin in the down sales environment.”

Key Stats:

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 86 cents versus a mean estimate of net income of 77 cents per share.

Net income has increased 79.5% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than fourfold from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 75 cents a share to 72 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $3.18 a share to $3.12 over the last thirty days.

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

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