SPX Crushes Earnings Estimates

SPX (NYSE: SPW  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SPX beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.

Gross margins increased, operating margins dropped, net margins dropped.

Revenue details
SPX booked revenue of $1.44 billion. The 12 analysts polled by S&P Capital IQ wanted to see net sales of $1.38 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $581.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.18. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.57 per share. GAAP EPS of $2.83 for Q4 were 130% higher than the prior-year quarter's $1.23 per share. (The prior-year quarter included $0.58 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.0%, 40 basis points better than the prior-year quarter. Operating margin was 9.0%, 640 basis points worse than the prior-year quarter. Net margin was 9.8%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.20 billion. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $5.26 billion. The average EPS estimate is $5.01.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 177 rating the stock outperform, and 11 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give SPX a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SPX is outperform, with an average price target of $78.18.

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