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Curtiss-Wright Receives Approval for $50M Share Repurchase

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Curtiss-Wright Corporation CW recently announced that its board of directors has authorized the repurchase of $50 million of its common stock via a 10b5-1 program beginning in January 2020. Curtiss-Wright currently has $200 million available under the share repurchase authorization.

Alongside the above-mentioned repurchase authorization, the company will have $100 million for repurchasing additional shares through a supplemental 10b5-1 program.

Share Repurchase Plan for 2019

Periodic share repurchases enable the company to raise shareholders' value. Share repurchases reduce the total outstanding shares of the company, boost its ability to generate solid earnings growth and free cash flow, and attract investors.

During the first nine months ended Sep 30, 2018, Curtiss-Wright repurchased 318,524 shares for approximately $38 million. To raise shareholders' value, the company paid out $13.7 million as dividends over the same period.

Robust Performance Supporting Share Buybacks

Rising global trade activities along with an increasing need for replacing the aging fleet with new airplanes have been fueling Curtiss-Wright's commercial aerospace business. Moreover, a steady increase in commercial aircraft deliveries has been boosting the company’s performance.

Considering these trends, Curtiss-Wright anticipates witnessing higher organic growth, going ahead, in all end markets. Notably, the company surpassed earnings estimates in the last 12 quarters and the trend is expected to continue in the upcoming quarters, primarily attributable to higher sales.

Since 2013, the company has returned $867 million to its shareholders through share repurchases and aims to make more such buybacks. Free cash flow for 2019, expected in the range of $340-$350 million, is likely to help Curtiss-Wright meet its buy-back goals.

Price Performance

Shares of the company have gained 15.5% in the past six months against the industry’s growth of 13.8%.

Zacks Rank & Other Key Picks    

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.

A few other top-ranked stocks in the same space are Ducommun Incorporated DCO, CAE Inc (CAE - Free Report) and Teledyne Technologies Incorporated TDY. While Ducommun Incorporated sports a Zacks Rank #1, CAE Inc and Teledyne Technologies carry a Zacks Rank #2.

Ducommun Incorporated came up with average positive earnings surprise of 25.46% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has risen 2.8% to $2.61 in the past 90 days.

CAE Inc. has a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for 2019 earnings has risen 1% to $1.03 in the past 90 days.

Teledyne Technologies has a long-term earnings growth rate of 7.5%. The Zacks Consensus Estimate for 2019 earnings has risen 4.2% to $10 in the past 90 days.

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