Thursday, December 6, 2012

Hitachi Increases Sales but Misses Revenue Estimate

Hitachi (NYSE: HIT  ) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Hitachi missed estimates on revenues and NA on earnings per share.

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

Margins dropped across the board.

Revenue details
Hitachi notched revenue of $29.44 billion. The six analysts polled by S&P Capital IQ foresaw sales of $30.11 billion. Sales were 5.5% higher than the prior-year quarter's $27.90 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.09. The two earnings estimates compiled by S&P Capital IQ anticipated $1.36 per share. GAAP EPS of $0.09 for Q3 were 44% lower than the prior-year quarter's $0.16 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.1%, 90 basis points worse than the prior-year quarter. Operating margin was 4.2%, 110 basis points worse than the prior-year quarter. Net margin was 1.5%, 120 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $34.37 billion. On the bottom line, the average EPS estimate is $3.38.

Next year's average estimate for revenue is $124.17 billion. The average EPS estimate is $5.79.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 107 members out of 128 rating the stock outperform, and 21 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Hitachi a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hitachi is outperform, with an average price target of $69.36.

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