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Curtiss-Wright (CW) Q3 Earnings Top Estimates, Sales Rise Y/Y
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Shares of Curtiss-Wright Corporation (CW - Free Report) have improved 2.7% to reach $171.80 since the company’s third-quarter results, reflecting investors’ optimism.
The company reported third-quarter 2022 adjusted earnings of $2.07 per share, which surpassed the Zacks Consensus Estimate of $2.03 by 1.9%. The bottom line also surged 10% on a year-over-year basis.
Operational Performance
In the quarter under review, the company’s net sales of $631 million went up 3% year over year. However, the top line missed the Zacks Consensus Estimate of $658 million by 4.2%.
The operating income of $114 million surged 6% from $108 million a year ago. The adjusted operating margin expanded 70 basis points (bps) to 18.2%, driven by the benefits of ongoing company-wide operational excellence initiatives and favorable overhead absorption on higher revenues in the Aerospace & Industrial and Naval & Power segments.
Curtiss-Wright’s total backlog at the end of the third quarter of 2022 was $2.6 billion. New orders of $818 million increased 32% in the third quarter compared with the prior-year period, driven by solid demand in the aerospace & defense market and commercial market demand.
Curtiss-Wright Corporation Price, Consensus and EPS Surprise
Aerospace & Industrial: Sales in this segment improved 9% year over year to $213 million, primarily attributable to higher commercial aerospace market revenues. The upside in revenues was mainly due to the strong demand for actuation and sensor products and surface treatment services.
Further, higher general industrial market revenues, driven by the increased sale of industrial vehicle products, fueled the sales performance of the segment.
While the operating income increased 27% to $39 million, the operating margin expanded 260 bps to 18.3%. The upside in the margin was mainly due to favorable absorption on strong sales and the benefits of its ongoing operational excellence and pricing initiatives.
Defense Electronics: Sales in this segment declined 12% year over year to $161 million. This decline was due to ongoing supply-chain headwinds, lower aerospace defense market revenues and decreased ground defense market revenues.
The operating income plunged 14% to $37 million, while the operating margin contracted 50 bps to 22.7%. The deterioration can be attributed to unfavorable absorption on lower A&D revenues.
Naval & Power: Sales in this segment increased 9% year over year to $256 million due to the favorable impact of the arresting system acquisition and higher revenues from the CVN-81 aircraft carrier and Columbia-class submarine programs.
The unit’s operating income increased 11% to $48.5 million. The operating margin expanded 30 bps to 18.9%. This acceleration was due to the favorable absorption of higher organic revenues and the benefits of ongoing operational excellence initiatives.
Financial Update
CW’s cash and cash equivalents as of Sep 30, 2022 were $113.6 million compared with $171 million as of Dec 31, 2021.
The long-term debt was $1,141.2 million as of Sep 30, 2022 compared with $1,050.6 million as of Dec 31, 2021.
The operating cash outflow totaled $96 million at the end of the third quarter of 2022 compared with $107 million in the prior-year period.
Adjusted free cash flow at the end of the reported quarter was $86 million compared with the year-ago period’s $97 million.
2022 Guidance
Curtiss-Wright updated its financial guidance for 2022. The company now expects adjusted earnings in the band of $8.05-$8.20 per share compared with the prior range of $8.10-$8.30 per share.
The Zacks Consensus Estimate for the company’s full-year earnings is pegged at $8.19 per share, slightly lower than the midpoint of the company’s guided range.
The company also updated its adjusted sales guidance and now expects sales in the range of $2,525-$2,575 million compared with the prior range of $2,570-$2,620 million in 2022. The Zacks Consensus Estimate for its full-year sales is pegged at $2.59 billion, higher than the midpoint of the company’s guided range.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported a third-quarter 2022 adjusted loss of 25 cents per share, narrower than the Zacks Consensus Estimate for a loss of 39 cents. The bottom line improved significantly from the year-ago quarter’s loss of $1.13 per share.
Total revenues of $1,277 million lagged the Zacks Consensus Estimate of $1,295 million by 1.4%. However, the top line rose 30% on a year-over-year basis, driven by the higher production deliveries of the Boeing 737 and increased aftermarket revenues.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.
In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.
Leidos Holdings, Inc.’s (LDOS - Free Report) third-quarter 2022 adjusted earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.56 by 1.9%. However, the bottom line declined 11.7% from the $1.80 per share registered a year ago.
Leidos Holdings generated total revenues of $3,600 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,543.9 million by 1.6%. The top line also improved 4% year over year.
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Curtiss-Wright (CW) Q3 Earnings Top Estimates, Sales Rise Y/Y
Shares of Curtiss-Wright Corporation (CW - Free Report) have improved 2.7% to reach $171.80 since the company’s third-quarter results, reflecting investors’ optimism.
The company reported third-quarter 2022 adjusted earnings of $2.07 per share, which surpassed the Zacks Consensus Estimate of $2.03 by 1.9%. The bottom line also surged 10% on a year-over-year basis.
Operational Performance
In the quarter under review, the company’s net sales of $631 million went up 3% year over year. However, the top line missed the Zacks Consensus Estimate of $658 million by 4.2%.
The operating income of $114 million surged 6% from $108 million a year ago. The adjusted operating margin expanded 70 basis points (bps) to 18.2%, driven by the benefits of ongoing company-wide operational excellence initiatives and favorable overhead absorption on higher revenues in the Aerospace & Industrial and Naval & Power segments.
Curtiss-Wright’s total backlog at the end of the third quarter of 2022 was $2.6 billion. New orders of $818 million increased 32% in the third quarter compared with the prior-year period, driven by solid demand in the aerospace & defense market and commercial market demand.
Curtiss-Wright Corporation Price, Consensus and EPS Surprise
CurtissWright Corporation price-consensus-eps-surprise-chart | CurtissWright Corporation Quote
Segmental Performance
Aerospace & Industrial: Sales in this segment improved 9% year over year to $213 million, primarily attributable to higher commercial aerospace market revenues. The upside in revenues was mainly due to the strong demand for actuation and sensor products and surface treatment services.
Further, higher general industrial market revenues, driven by the increased sale of industrial vehicle products, fueled the sales performance of the segment.
While the operating income increased 27% to $39 million, the operating margin expanded 260 bps to 18.3%. The upside in the margin was mainly due to favorable absorption on strong sales and the benefits of its ongoing operational excellence and pricing initiatives.
Defense Electronics: Sales in this segment declined 12% year over year to $161 million. This decline was due to ongoing supply-chain headwinds, lower aerospace defense market revenues and decreased ground defense market revenues.
The operating income plunged 14% to $37 million, while the operating margin contracted 50 bps to 22.7%. The deterioration can be attributed to unfavorable absorption on lower A&D revenues.
Naval & Power: Sales in this segment increased 9% year over year to $256 million due to the favorable impact of the arresting system acquisition and higher revenues from the CVN-81 aircraft carrier and Columbia-class submarine programs.
The unit’s operating income increased 11% to $48.5 million. The operating margin expanded 30 bps to 18.9%. This acceleration was due to the favorable absorption of higher organic revenues and the benefits of ongoing operational excellence initiatives.
Financial Update
CW’s cash and cash equivalents as of Sep 30, 2022 were $113.6 million compared with $171 million as of Dec 31, 2021.
The long-term debt was $1,141.2 million as of Sep 30, 2022 compared with $1,050.6 million as of Dec 31, 2021.
The operating cash outflow totaled $96 million at the end of the third quarter of 2022 compared with $107 million in the prior-year period.
Adjusted free cash flow at the end of the reported quarter was $86 million compared with the year-ago period’s $97 million.
2022 Guidance
Curtiss-Wright updated its financial guidance for 2022. The company now expects adjusted earnings in the band of $8.05-$8.20 per share compared with the prior range of $8.10-$8.30 per share.
The Zacks Consensus Estimate for the company’s full-year earnings is pegged at $8.19 per share, slightly lower than the midpoint of the company’s guided range.
The company also updated its adjusted sales guidance and now expects sales in the range of $2,525-$2,575 million compared with the prior range of $2,570-$2,620 million in 2022. The Zacks Consensus Estimate for its full-year sales is pegged at $2.59 billion, higher than the midpoint of the company’s guided range.
Zacks Rank
Curtiss-Wright currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported a third-quarter 2022 adjusted loss of 25 cents per share, narrower than the Zacks Consensus Estimate for a loss of 39 cents. The bottom line improved significantly from the year-ago quarter’s loss of $1.13 per share.
Total revenues of $1,277 million lagged the Zacks Consensus Estimate of $1,295 million by 1.4%. However, the top line rose 30% on a year-over-year basis, driven by the higher production deliveries of the Boeing 737 and increased aftermarket revenues.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.
In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.
Leidos Holdings, Inc.’s (LDOS - Free Report) third-quarter 2022 adjusted earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.56 by 1.9%. However, the bottom line declined 11.7% from the $1.80 per share registered a year ago.
Leidos Holdings generated total revenues of $3,600 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,543.9 million by 1.6%. The top line also improved 4% year over year.