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Kaman's (KAMN) Q2 Earnings & Revenues Miss Estimates, Up Y/Y
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Kaman Corporation (KAMN - Free Report) reported weaker-than-expected results for second-quarter 2018. However, the top- and bottom-line figures improved on a year-over-year basis.
Earnings/Revenues
Quarterly adjusted earnings came in at 54 cents per share, missing the Zacks Consensus Estimate of 62 cents. However, the bottom line came in 12.5% higher than the year-ago tally.
Revenues in the reported quarter were $468.1 million, up 4.3% year over year. However, the top line missed the Zacks Consensus Estimate of $469 million.
Segmental Break-Up
Revenues in the Distribution segment improved 3.9% year over year to $289.5 million. On the other hand, the top-line performance of the Aerospace segment improved 4.9% year over year to $178.6 million.
Kaman Corporation Price, Consensus and EPS Surprise
Cost of sales in the second quarter was $332.5 million, up 5.7% year over year. Gross profit margin was 29%, down 100 basis points (bps) year over year.
Selling, general and administrative expenses in the reported quarter were $114.3 million, higher than $108 million recorded in the year-ago quarter. Operating margin was 4.5%, down 140 bps year over year.
Balance Sheet/Cash Flow
Exiting the second quarter, Kaman had cash and cash equivalents of $27.6 million, lower than $36.9 million recorded as of Dec 31, 2017. Long-term debt stood at $316.2 million, lower than $391.7 million recorded at the end of 2017.
In first-half 2018, the company generated $93.7 million cash from operating activities, as against $0.2 million cash used in the year-ago period. Capital expenditure totaled $15.8 million, up from $15.2 million recorded in the year-earlier period.
Outlook
Kaman currently predicts that its Aerospace segment will generate revenues of roughly $755 million in 2018. Also, the Distribution segment revenues are projected at $1,135-$1,170 million. Operating margin of the Aerospace segment is estimated to lie within the 16.6-16.8% range. The same for the Distribution segment is estimated to lie in the band of 4.9-5.1%.
Zacks Rank & Stocks to Consider
Kaman currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alamo Group, Inc. (ALG - Free Report) carries a Zacks Rank #2 (Buy). The stock came up with an average positive earnings surprise of 6.06% over the preceding four quarters.
Apogee Enterprises, Inc. (APOG - Free Report) is another Zacks #2 Ranked company. The stock generated an average positive earnings surprise of 0.88% during the same time frame.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Kaman's (KAMN) Q2 Earnings & Revenues Miss Estimates, Up Y/Y
Kaman Corporation (KAMN - Free Report) reported weaker-than-expected results for second-quarter 2018. However, the top- and bottom-line figures improved on a year-over-year basis.
Earnings/Revenues
Quarterly adjusted earnings came in at 54 cents per share, missing the Zacks Consensus Estimate of 62 cents. However, the bottom line came in 12.5% higher than the year-ago tally.
Revenues in the reported quarter were $468.1 million, up 4.3% year over year. However, the top line missed the Zacks Consensus Estimate of $469 million.
Segmental Break-Up
Revenues in the Distribution segment improved 3.9% year over year to $289.5 million. On the other hand, the top-line performance of the Aerospace segment improved 4.9% year over year to $178.6 million.
Kaman Corporation Price, Consensus and EPS Surprise
Kaman Corporation Price, Consensus and EPS Surprise | Kaman Corporation Quote
Costs/Margins
Cost of sales in the second quarter was $332.5 million, up 5.7% year over year. Gross profit margin was 29%, down 100 basis points (bps) year over year.
Selling, general and administrative expenses in the reported quarter were $114.3 million, higher than $108 million recorded in the year-ago quarter. Operating margin was 4.5%, down 140 bps year over year.
Balance Sheet/Cash Flow
Exiting the second quarter, Kaman had cash and cash equivalents of $27.6 million, lower than $36.9 million recorded as of Dec 31, 2017. Long-term debt stood at $316.2 million, lower than $391.7 million recorded at the end of 2017.
In first-half 2018, the company generated $93.7 million cash from operating activities, as against $0.2 million cash used in the year-ago period. Capital expenditure totaled $15.8 million, up from $15.2 million recorded in the year-earlier period.
Outlook
Kaman currently predicts that its Aerospace segment will generate revenues of roughly $755 million in 2018. Also, the Distribution segment revenues are projected at $1,135-$1,170 million. Operating margin of the Aerospace segment is estimated to lie within the 16.6-16.8% range. The same for the Distribution segment is estimated to lie in the band of 4.9-5.1%.
Zacks Rank & Stocks to Consider
Kaman currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alamo Group, Inc. (ALG - Free Report) carries a Zacks Rank #2 (Buy). The stock came up with an average positive earnings surprise of 6.06% over the preceding four quarters.
Apogee Enterprises, Inc. (APOG - Free Report) is another Zacks #2 Ranked company. The stock generated an average positive earnings surprise of 0.88% during the same time frame.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>