Pall Corporation Earnings: Profit Rises for Fourth Straight Quarter

S&P 500 (NYSE:SPY) component Pall Corporation (NYSE:PLL) reported net income above Wall Street’s expectations for the fourth quarter. Pall Corp. supplies filtration, separation and purification technologies for the removal of contaminants from a variety of liquids and gases.

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Pall Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Pall Corporation rose to $97.4 million (82 cents per share) vs. $55 million (47 cents per share) in the same quarter a year earlier. This marks a rise of 77.2% from the year earlier quarter.

Revenue: Rose 15% to $780.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PLL reported adjusted net income of 76 cents per share. By that measure, the company beat the mean estimate of 71 cents per share. It beat the average revenue estimate of $659.2 million.

Quoting Management: Commenting on the quarter, Eric Krasnoff, CEO and President, said, “As previously announced, fourth quarter sales increased 6% in LC, with growth in all markets. While sales volume in both businesses met our expectations, profitability in Pall Industrial did not. The end result is that fourth quarter earnings fell short of the Company’s expectations. “We are pleased that the IRS concluded its audits of fiscal years 1999 through 2005. The quarter reflects the benefits of reversing approximately $27 million of previously recorded tax-related liabilities. Moreover, this settlement substantially eliminates the uncertainty of penalties to which the Company may be subject.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 2% and in the second quarter, the figure rose 52.5%.

Gross margin shrank 1.4 percentage points to 48.4%. The contraction appeared to be driven by increased costs, which rose 18.3% from the year earlier quarter while revenue rose 15%.

Revenue has risen the past four quarters. Revenue increased 15.2% to $709.8 million in the third quarter. The figure rose 15.1% in the second quarter from the year earlier and climbed 10.7% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 76 cents versus a mean estimate of net income of 88 cents per share.

Competitors to Watch: Nordson Corporation (NASDAQ:NDSN), General Electric Company (NYSE:GE), CLARCOR Inc. (NYSE:CLC), 3M Company (NYSE:MMM), Donaldson Company, Inc. (NYSE:DCI), Thermo Fisher Scientific Inc. (NYSE:TMO), Danaher Corporation (NYSE:DHR), Parker-Hannifin Corp. (NYSE:PH), Teleflex Incorporated (NYSE:TFX), and Flow International Corp. (NASDAQ:FLOW).

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(Source: Xignite Financials)