Cubic Corporation

Cubic Corporation (CUB) saw fiscal second-quarter earnings of 53 cents per share, topping the year-prior 36 cents and exceeding analysts’ estimates of 43 cents. Second-quarter sales of $242.8 million came in above last year’s $210.3 million.

Company Description

Cubic Corporation is the parent company of two major business segments: defense and transportation. The Cubic Defense group is a world leader in realistic combat training systems, mission support services and defense electronics. Cubic Transportation Systems is a leader in the design and manufacture of automated fare collection systems and services for public transit authorities worldwide.

Strong Results

The company saw fiscal second-quarter earnings of 53 cents per share, topping the year-prior 36 cents and exceeding analysts’ estimates of 43 cents.

Second-quarter sales of $242.8 million came in above last year’s $210.3 million. Sales from the defense segment increased 26% year-over-year to $173.7 million.

Shares of saw a nice spike after delivering the strong quarter and have been trading well ahead of the market over the past year.

Bullish Forecasts

Analysts are upbeat on earnings. Estimates for the year ending September 2009 are at $2.02 per share, up from last month’s $1.91. For the following year, earnings projections of $2.17 were increased from the previous month’s $2.06.

Favorable Industry Comparisons

Cubic offers a return on equity (ROE) 12%, topping the industry average of 9%. The company’s net profit margin of 5% is also ahead of the industry average of 1%. The company rewards shareholders with an industry-leading dividend yield of 0.5%.

Read the full analyst report on CUB