Pall Corp. Profit Falls, Yet Tops Estimates - Update

(RTTNews) - Filtration products maker Pall Corp. (PLL) Tuesday reported a sharply lower first-quarter profit, hurt by poor margins, while the prior year had hefty gains from discontinued operations. However, excluding items, quarterly earnings marginally improved from a year ago and topped Wall Street estimates, as did sales.

The company reiterated its outlook for 2014.

"We executed a good quarter in the face of global end market weakness. We are performing well and building sustaining value," said CEO Larry Kingsley.

Port Washington, New York-based Pall Corp. posted quarterly net income of $71.5 million or $0.63 per share, compared with $339.5 million or $2.92 per share last year.

Results for the prior-year quarter included gains of $250 million related to discontinued operations.

Excluding items, pro forma earnings from continuing operations for the quarter were $79 million or $0.70 per share, compared with $78.54 million or $0.68 per share in the prior year.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter rose to $629.8 million from $627.6 million a year ago. Analysts had a consensus sales estimate of $627.27 million for the quarter.

Among segments, Life Sciences sales climbed 6 percent year-over-yea, but margins slid 1.6 percentage points. Industrial sales slid 5 percent from a year ago.

Provision for income tax for the quarter was higher at $21 million, compared with $15.7 million in the prior year.

For fiscal 2014, the company continues to expect revenue growth in the low-to-mid single digits, resulting in pro forma earnings per share growth of 9 percent to 15 percent. Analysts expect earnings of $3.40 per share on sales growth of 3.10 percent.

Pall Corp. stock is trading at $83.37, up $1.67 or 2.04%, on a volume of 322 thousand shares on the NYSE.