On Mar 14, Zacks Investment Research upgraded
Wesco Aircraft Holdings, Inc
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Wesco Aircraft has been witnessing rising earnings estimates on
the back of fiscal first-quarter 2014 results where both the top
and the bottom line improved year over year. Moreover, this
aerospace/defense company delivered positive earnings surprises
in 2 of the last 4 quarters with an average beat of 6.15%. The
long-term expected earnings growth rate for this stock is
The company delivered adjusted earnings of 27 cents per share on
revenues of $224.7 million. While revenues improved 6.4% year
over year, the bottom line rose 8% over the prior-year quarter.
Wesco Aircraft continues to witness solid international growth.
The company continues to expect sales of $975 million to $1.01
billion in fiscal 2014, which translates into a year-over-year
improvement of 8.1%-12.0%. The affirmed earnings are projected
between $1.25 and $1.31 per share and adjusted earnings between
$1.31 and $1.37 per share in fiscal 2014.
The Zacks Consensus Estimate is pegged near the higher end of
the company's adjusted earnings guidance. The company's high
levels of activity in orders, in addition to current contracts,
and contract renewals with existing customers reinforce its
confidence to achieve its expectations.
Wesco Aircraft is also active on the acquisition front. At the
end of last month, the company closed the buyout of Haas Group
Inc. for $550 million in cash from certain investment funds
affiliated to The Jordan Company, L.P.
The acquisition will help Wesco Aircraft to cut costs and
comply with even more complex regulatory requirements for
chemical usage. Wesco will also stand to gain access to Haas'
proprietary IT system ("tcmIS") that interfaces directly with
customer and supplier enterprise resource planning systems.
HUNTINGTON INGL (HII): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
WESCO AIRCRAFT (WAIR): Free Stock Analysis
To read this article on Zacks.com click here.
The Zacks Consensus Estimate for each of fiscal 2014 and 2015
increased by a penny over the last 30 days to $1.36 and $1.58,
Other Stocks to Consider
Other players in the industry, which look attractive at current
Huntington Ingalls Industries, Inc
Lockheed Martin Corp.
Northrop Grumman Corp.
). While Huntington Ingalls holds the same Zacks Rank as Wesco
Aircraft, Lockheed Martin and Northrop Grumman carry a Zacks Rank