We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Curtiss-Wright Corporation (CW - Free Report) rose 0.7% to reach $236.37 on Feb 15, following the release of its fourth-quarter 2023 results.
The company reported fourth-quarter adjusted earnings per share (EPS) of $3.16, which surpassed the Zacks Consensus Estimate of $2.92 by 8.2%. The bottom line improved 8.2% from the year-ago quarter’s level of $2.92.
The company reported a GAAP EPS of $3.11, up from $2.82 in the year-ago quarter.
For 2023, the company generated EPS of $9.38, up from $8.13 recorded in 2022.
Curtiss-Wright Corporation Price, Consensus and EPS Surprise
In the quarter under review, the company’s net sales of $785.8 million went up 3.7% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $737 million by 6.6%.
For 2023, the company reported net sales worth $2.85 billion, up from $2.56 recorded in 2022.
The company reported adjusted operating income of $163.2 million in the fourth quarter, up 2.2% year over year. The operating margin contracted 30 basis points (bps) to 20.8%.
Curtiss-Wright’s total backlog at the end of the fourth quarter was $2.9 billion, in line with the previous quarter’s level.
New orders of $685 million declined 4% year over year due to unfavorable timing in its Defense markets.
Segmental Performance
Aerospace & Industrial: Sales in this segment improved 7% year over year to $238.2 million. The upside was driven by higher OEM sales of actuation, and sensors products and surface treatment services on narrowbody and widebody platforms. Also, higher revenues from the aerospace defense market supporting various fighter jet programs benefited the segment’s sales growth.
The operating income improved 7% to $44.1 million. The operating margin expanded 30 bps to 18.5%.
Defense Electronics: Sales in this segment increased 1% year over year to $239.8 million. This rise was driven by higher sales of tactical battlefield communications equipment as well as that of embedded computing equipment on the Stryker ground combat vehicle, along with favorable timing of sales of its embedded computing equipment on various helicopter programs.
The operating income declined 2% to $69 million. The operating margin contracted 90 bps to 28.8%.
Naval & Power: Sales in this segment increased 3% year over year to $307.8 million, driven by higher sales contributions from the arresting systems equipment and strong growth in industrial valve sales in the process market. Moreover, solid growth in the commercial nuclear market, supporting increased development of Advanced Small Modular Reactors (ASMRs) contributed to this unit’s top-line growth.
The segment's adjusted operating income decreased 2% to $56.8 million. The adjusted operating margin contracted 100 bps to 18.5%.
Financial Update
CW’s cash and cash equivalents as of Dec 31, 2023, were $406.9 million compared with $257 million as of Dec 31, 2022.
The long-term debt was $1,050.4 million as of Dec 31, 2023, compared with $1,051.9 million as of Dec 31, 2022.
The operating cash inflow totaled $448.1 million at the end of 2023 compared with $294.8 million a year ago.
The adjusted free cash flow at the end of 2023 was $413.4 million against adjusted free cash outflow of $295.5 million in the previous year.
2024 Guidance
Curtiss-Wright has provided its guidance for 2024. The company expects to generate GAAP earnings in the band of $10.00-$10.30 per share.
CW projects sales in the range of $2.96-$3.01 billion. The Zacks Consensus Estimate for full-year sales is pegged at $2.95 billion, lower than the company’s guided range.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
Net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2023 earnings per share of $3.64, which missed the Zacks Consensus Estimate of $3.66 by 0.6%. However, the figure increased 1.7% from $3.58 recorded in the year-ago quarter.
In the quarter under review, revenues of $11,668 million beat the Zacks Consensus Estimate of $11,543 million by 1.1%. The top line also improved 7.5% from the prior-year reported figure.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
TXT reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Curtiss-Wright (CW) Q4 Earnings Beat, Sales Increase Y/Y
Shares of Curtiss-Wright Corporation (CW - Free Report) rose 0.7% to reach $236.37 on Feb 15, following the release of its fourth-quarter 2023 results.
The company reported fourth-quarter adjusted earnings per share (EPS) of $3.16, which surpassed the Zacks Consensus Estimate of $2.92 by 8.2%. The bottom line improved 8.2% from the year-ago quarter’s level of $2.92.
The company reported a GAAP EPS of $3.11, up from $2.82 in the year-ago quarter.
For 2023, the company generated EPS of $9.38, up from $8.13 recorded in 2022.
Curtiss-Wright Corporation Price, Consensus and EPS Surprise
Curtiss-Wright Corporation price-consensus-eps-surprise-chart | Curtiss-Wright Corporation Quote
Operational Performance
In the quarter under review, the company’s net sales of $785.8 million went up 3.7% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $737 million by 6.6%.
For 2023, the company reported net sales worth $2.85 billion, up from $2.56 recorded in 2022.
The company reported adjusted operating income of $163.2 million in the fourth quarter, up 2.2% year over year. The operating margin contracted 30 basis points (bps) to 20.8%.
Curtiss-Wright’s total backlog at the end of the fourth quarter was $2.9 billion, in line with the previous quarter’s level.
New orders of $685 million declined 4% year over year due to unfavorable timing in its Defense markets.
Segmental Performance
Aerospace & Industrial: Sales in this segment improved 7% year over year to $238.2 million. The upside was driven by higher OEM sales of actuation, and sensors products and surface treatment services on narrowbody and widebody platforms. Also, higher revenues from the aerospace defense market supporting various fighter jet programs benefited the segment’s sales growth.
The operating income improved 7% to $44.1 million. The operating margin expanded 30 bps to 18.5%.
Defense Electronics: Sales in this segment increased 1% year over year to $239.8 million. This rise was driven by higher sales of tactical battlefield communications equipment as well as that of embedded computing equipment on the Stryker ground combat vehicle, along with favorable timing of sales of its embedded computing equipment on various helicopter programs.
The operating income declined 2% to $69 million. The operating margin contracted 90 bps to 28.8%.
Naval & Power: Sales in this segment increased 3% year over year to $307.8 million, driven by higher sales contributions from the arresting systems equipment and strong growth in industrial valve sales in the process market. Moreover, solid growth in the commercial nuclear market, supporting increased development of Advanced Small Modular Reactors (ASMRs) contributed to this unit’s top-line growth.
The segment's adjusted operating income decreased 2% to $56.8 million. The adjusted operating margin contracted 100 bps to 18.5%.
Financial Update
CW’s cash and cash equivalents as of Dec 31, 2023, were $406.9 million compared with $257 million as of Dec 31, 2022.
The long-term debt was $1,050.4 million as of Dec 31, 2023, compared with $1,051.9 million as of Dec 31, 2022.
The operating cash inflow totaled $448.1 million at the end of 2023 compared with $294.8 million a year ago.
The adjusted free cash flow at the end of 2023 was $413.4 million against adjusted free cash outflow of $295.5 million in the previous year.
2024 Guidance
Curtiss-Wright has provided its guidance for 2024. The company expects to generate GAAP earnings in the band of $10.00-$10.30 per share.
CW projects sales in the range of $2.96-$3.01 billion. The Zacks Consensus Estimate for full-year sales is pegged at $2.95 billion, lower than the company’s guided range.
Zacks Rank
Curtiss-Wright currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
Net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2023 earnings per share of $3.64, which missed the Zacks Consensus Estimate of $3.66 by 0.6%. However, the figure increased 1.7% from $3.58 recorded in the year-ago quarter.
In the quarter under review, revenues of $11,668 million beat the Zacks Consensus Estimate of $11,543 million by 1.1%. The top line also improved 7.5% from the prior-year reported figure.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
TXT reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.