S&P 500 (NYSE:SPY) component Praxair, Inc. (NYSE:PX) reported its results for the second quarter. Praxair Inc. produces and sells atmospheric, process and specialty gases, and high-performance surface coatings to industrial clients.
Praxair Earnings Cheat Sheet for the Second Quarter
Results: Net income for Praxair, Inc. rose to $425 million ($1.38 per share) vs. $371 million ($1.19 per share) in the same quarter a year earlier. This marks a rise of 14.6% from the year earlier quarter.
Revenue: Rose 13.1% to $2.86 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: PX was about in line with expectations as the mean analyst estimate of $1.37 per share. It beat the average revenue estimate of $2.79 billion.
Quoting Management: Chairman and Chief Executive Officer Steve Angel said, “Our second-quarter results reflect continued strong growth in Asia and South America and moderate growth in North America. Our backlog of new projects under contract and construction reached a record level of $2.7 billion reflecting strong growth in energy markets and emerging economies. Earnings growth continues to outpace sales growth due to our unrelenting focus on pricing and productivity.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.
Gross margin shrank 0.5 percentage point to 42.6%. The contraction appeared to be driven by increased costs, which rose 14.1% from the year earlier quarter while revenue rose 13.1%.
Revenue has risen the past four quarters. Revenue increased 11.3% to $2.7 billion in the first quarter. The figure rose 9% in the fourth quarter of the last fiscal year from the year earlier and climbed 10.9% in the third quarter of the last fiscal year from the year-ago quarter.
Net income has increased 4.1% year over year on average across the last five quarters. The biggest gain came in the first, when income climbed 26.8% from the year earlier quarter.
(Source: Xignite Financials)