Praxair Earnings: Revenue Misses the Mark
Falling revenue did not prevent S&P 500 (NYSE:SPY) component Praxair Inc. (NYSE:PX) from reporting a profit boost in the second quarter. Praxair produces and sells atmospheric, process and specialty gases, and high-performance surface coatings to industrial clients.
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Praxair Inc. Earnings Cheat Sheet
Results: Net income for the chemicals-diversified rose to $429 million ($1.42 per share) vs. $425 million ($1.38 per share) in the same quarter a year earlier. This marks a rise of 0.9% from the year-earlier quarter.
Revenue: Fell 1.6% to $2.81 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Praxair Inc. fell in line with the mean analyst estimate of $1.42 per share. It fell short of the average revenue estimate of $2.93 billion.
Quoting Management: Commenting on the financial results and business outlook, chairman, president and chief executive officer Steve Angel said, “North America, our largest region, experienced solid growth and improved operating leverage. Europe and South America were negatively impacted by weaker currencies and macro-economic conditions. Asia sales benefited from new project start-ups to supply customers under long-term contracts. Our backlog of large projects with customer contracts remains strong at $2.5 billion and new customer proposal activity remains at healthy levels.”
The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 5.3% and in the fourth quarter of the last fiscal year, the figure rose more than threefold.
A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 14.1%.
The company met estimates last quarter after topping forecasts in the previous quarter with net income of $1.38 versus a mean estimate of net income of $1.36 per share.
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 third quarter has fallen from $1.52 per share to $1.49. For the fiscal year, the average estimate has moved down from $5.85 a share to $5.79 over the last sixty days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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