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Wesco Aircraft (WAIR) Lags Q1 Earnings, Revenues Fall Y/Y
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Wesco Aircraft Holdings, Inc. reported first-quarter fiscal 2017 earnings from continuing operations of 19 cents per share, missing the Zacks Consensus Estimate of 26 cents by 26.9%. Reported earnings were also down 24% from 25 cents recorded in the year-ago quarter.
Wesco Aircraft’s fiscal first-quarter total revenue of $339.4 million missed the Zacks Consensus Estimate of $359 million by 5.5%. Reported revenues were also down from $359.8 million in the year-ago quarter.
Operational Highlights
Gross profit during the first quarter was $89.5 million, compared with $96.6 million in the first quarter of fiscal 2016. Gross margin contracted 50 basis points to 26.4% from 26.9% in the year-ago period. The margin contraction was primarily due to changes in mix.
Selling, general and administrative (SG&A) expenses in the fiscal first quarter increased 6.1% to $63.2 million primarily due to higher planned people-related and systems costs.
Operating income were $26.3 million, or 7.7% of net sales, compared to $37.1 million, or 10.3% of the top line, in the first quarter of fiscal 2016.
In the quarter under review, adjusted EBITDA in the first quarter of fiscal 2017 was $34.3 million, down from $45.6 million in the year ago period.
Wesco Aircraft Holdings, Inc. Price, Consensus and EPS Surprise
As of Dec 31, 2016, Wesco Aircraft’s cash and cash equivalents were $51.2 million, compared with $77.1 million as of Sep 30, 2016.
Long-term debt excluding current portion as of Dec 31, 2016 was $803.2 million, lower than the $834.3 million as of Sep 30, 2016.
As of Dec 31, 2016, the company had utilized cash from operating activities of around $28.1 million, compared with a cash inflow of $10.7 million in the year-ago period. Free cash outflow from operations during the quarter was $29.4 million, compared with an inflow of $9.5 million in the previous year.
Fiscal 2017 Guidance
The company expects earnings in the range of $1.15–$1.20 per share.
Sales are expected to increase sequentially in each quarter.
Constant-currency sales are projected to increase in the range of 3−5%.
Other Aerospace & Defense Releases
Rockwell Collins Inc.’s adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 per share earned a year ago. The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pentagon’s prime contractor Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, surpassing the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level, courtesy of strong revenue and operating margin growth. The company has a Zacks Rank #3.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share, missing the Zacks Consensus Estimate of 87 cents by 8%. The company has a Zacks Rank #5 (Strong Sell).
Zacks Rank
Wesco Aircraft currently has a Zacks Rank #4 (Sell).
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Wesco Aircraft (WAIR) Lags Q1 Earnings, Revenues Fall Y/Y
Wesco Aircraft Holdings, Inc. reported first-quarter fiscal 2017 earnings from continuing operations of 19 cents per share, missing the Zacks Consensus Estimate of 26 cents by 26.9%. Reported earnings were also down 24% from 25 cents recorded in the year-ago quarter.
Total Revenue
Wesco Aircraft’s fiscal first-quarter total revenue of $339.4 million missed the Zacks Consensus Estimate of $359 million by 5.5%. Reported revenues were also down from $359.8 million in the year-ago quarter.
Operational Highlights
Gross profit during the first quarter was $89.5 million, compared with $96.6 million in the first quarter of fiscal 2016. Gross margin contracted 50 basis points to 26.4% from 26.9% in the year-ago period. The margin contraction was primarily due to changes in mix.
Selling, general and administrative (SG&A) expenses in the fiscal first quarter increased 6.1% to $63.2 million primarily due to higher planned people-related and systems costs.
Operating income were $26.3 million, or 7.7% of net sales, compared to $37.1 million, or 10.3% of the top line, in the first quarter of fiscal 2016.
In the quarter under review, adjusted EBITDA in the first quarter of fiscal 2017 was $34.3 million, down from $45.6 million in the year ago period.
Wesco Aircraft Holdings, Inc. Price, Consensus and EPS Surprise
Wesco Aircraft Holdings, Inc. Price, Consensus and EPS Surprise | Wesco Aircraft Holdings, Inc. Quote
Financial Condition
As of Dec 31, 2016, Wesco Aircraft’s cash and cash equivalents were $51.2 million, compared with $77.1 million as of Sep 30, 2016.
Long-term debt excluding current portion as of Dec 31, 2016 was $803.2 million, lower than the $834.3 million as of Sep 30, 2016.
As of Dec 31, 2016, the company had utilized cash from operating activities of around $28.1 million, compared with a cash inflow of $10.7 million in the year-ago period. Free cash outflow from operations during the quarter was $29.4 million, compared with an inflow of $9.5 million in the previous year.
Fiscal 2017 Guidance
The company expects earnings in the range of $1.15–$1.20 per share.
Sales are expected to increase sequentially in each quarter.
Constant-currency sales are projected to increase in the range of 3−5%.
Other Aerospace & Defense Releases
Rockwell Collins Inc.’s adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 per share earned a year ago. The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pentagon’s prime contractor Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, surpassing the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level, courtesy of strong revenue and operating margin growth. The company has a Zacks Rank #3.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share, missing the Zacks Consensus Estimate of 87 cents by 8%. The company has a Zacks Rank #5 (Strong Sell).
Zacks Rank
Wesco Aircraft currently has a Zacks Rank #4 (Sell).
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>