) reported healthy fourth-quarter fiscal 2014 results with pro
forma earnings of $1.11 a share, surpassing the Zacks Consensus
Estimate of $1.06 by 4.7%. Earnings per share (EPS) were 23.3%
above the prior-year quarter figure of 90 cents. For fiscal 2014,
the company reported pro forma earnings of $3.44 a share,
increasing 13.2% year over year. The pro forma earnings also beat
the Zacks Consensus Estimate of $3.39 by 1.5%.
Pall Corporation - Earnings Surprise |
Despite prevalent economic volatility across the globe, the
company reported modest profits, primarily attributable to improved
execution of operational plans and favorable impact of structural
This Zacks Rank #3 (Hold) company reported revenue growth of
11.6% year over year to $800 million. Revenues were also ahead of
the Zacks Consensus Estimate of $774 million. For fiscal
2014, revenues climbed 5% year over year to $2,789.1 million.
However, it lagged the Zacks Consensus Estimate of $2,763
Life Sciences segment
revenues in the reported quarter rose 16.7% to $413 million. The
upside was driven by a 24% rise in Biopharmaceuticals sales backed
by improved market conditions and synergies from acquisitions; 9%
growth in Food & Beverage sub-segment due to strong performance
in all three geographic regions; and a 6% growth in Medical aided
by higher OEM sales from acquisitions.
Revenues in the
increased 6.6% year over year to $387 million. Growth was primarily
driven by an 18% rise in Aerospace business, which gained from
favorable shipment timings; a 15% rise in Process Technologies
sales attributable to strong growth in end-markets and gains from
the acquisition of Filter Specialists, Inc; and 10% growth in
Microelectronics division, which benefited from the ongoing
improvements in the end-markets along with increase in new
Gross margin in the quarter contracted 50 basis points (bps) to
51% of sales. However, the operating margin increased 100 bps to
19.8% in the quarter.
Cash Flow and Balance Sheet
Pall Corporation ended fiscal 2014 with cash and cash
equivalents of $964.1 million, long-term debt (net of current
portion) of $375.8 million, and shareholders' equity of $1,895.4
million compared with respective fiscal 2013 tallies of $936.9
million, $467.3 million and $1,814 million.
The company's net cash from operating activities for fiscal 2014
came in at $503.9 million, up significantly by 31.1% from $384.5
million in fiscal 2013. The year-over-year improvement primarily
reflects the company's efficient management of working capital in
the reported fiscal.
Capital expenditure for fiscal 2014 was $74.7 million, while the
company paid $118.8 million in dividends.
Pall's free cash flow for the fiscal was $429.2 million compared
with $274.3 million at fiscal 2013-end.
The company provided its initial guidance for fiscal 2015. Pro
forma earnings are expected in the range of $3.75 to $3.95 per
share, reflecting year-over-year growth of 9% to 15%. Revenues are
likely to grow in mid-to-high single-digits in fiscal 2015.
The Zacks Consensus Estimate for 2015 is currently pegged at
Performance of Other Stocks in the Same Industry
Tetra Tech Inc (
) reported fiscal second-quarter 2014 earnings of 48 cents per
share, beating the Zacks Consensus Estimate of 39 cents.
CECO Environmental Corp. (
) reported first-quarter fiscal 2014 adjusted earnings of 19 cents
per share, 17.4% below the Zacks Consensus Estimate of 23
Calgon Carbon (
) reported second-quarter 2014 earnings of 28 cents per share,
missing the Zacks Consensus Estimate by a penny.
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