Pall Corp. Q3 Profit Climbs, But Misses Estimates; Backs Positive Outlook

(RTTNews) - Filtration products maker Pall Corp. (PLL) reported Thursday higher profit in its third quarter with increased sales and orders. Pro-forma earnings per share missed analysts' estimates, while top line beat their view. Further, the company maintained its positive outlook for fiscal 2014.

Pall Chairman and CEO Larry Kingsley said, "We performed well on the top line - up 7 percent excluding foreign exchange and including the impact of acquisitions."

For the third quarter, net earnings rose 21.4 percent to $88.69 million from $73.07 million last year. Earnings per share climbed 23 percent to $0.80 from $0.64 a year ago.

Pro forma earnings per share from continuing operations were $0.81, a 9 percent increase from $0.74 a year earlier, including a negative impact of approximately $0.01 from foreign currency translation.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.83 per share for the quarter. Analysts' estimates typically exclude special items.

Gross profit increased to $348.07 million from last year's $334.08 million. Meanwhile, gross margin dropped to 51 percent from prior year's 52.1 percent. Operating profit was $120.39 million or 17.6 percent of total sales, compared to last year's $111.88 million or 17.4 percent of total sales.

Quarterly sales increased 6 percent to $682.4 million from $641.19 million last year, while Wall Street analysts revenue consensus was $679.81 million. Sales in local currency were up about 7 percent.

Orders in the quarter increased 10 percent on a reported basis and in local currency.

Total sales in Life Sciences segment increased 13 percent year-over-year to $369 million with 11 percent rise in consumables sales and 48 percent jump in Systems sales.

Meanwhile, industrial sales were weak, mainly due to lower aerospace consumables sales on difficult year-over-year comparisons from large aftermarket sales and helicopter program shipments in the prior year that did not repeat.

Looking ahead, Kingsley said, "We remain firmly on track to deliver on our plan for the year of mid-single digit top line growth and pro forma EPS in the range of $3.35 to $3.45, which would represent growth of 10-13 percent over fiscal 2013."

Street is currently looking for fiscal year 2014 earnings of $3.41 per share on annual revenues of $2.75 billion.

On the NYSE, Pall shares gained $0.13 or 0.15 percent on Wednesday's regular trading and settled at $86.77. In the after hours trading, the stock gained $1.88 or 2.17 percent further, and traded at $88.65.