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Wesco Aircraft Holdings Q2 Earnings Meet Ests - Analyst Blog

By: Zacks.com
Posted: 5/8/2014 3:36:00 PM
Referenced Stocks: ADS;BA;ERJ;LMT;WAIR

Wesco Aircraft Holdings, Inc. ( WAIR ) reported second quarter fiscal 2014 adjusted earnings of 33 cents per share, in line with the Zacks Consensus Estimate as well as the prior-year figure.

The bottom line was driven by higher sales and the favorable outcome from the Haas acquisition, partially offset by higher selling, general and administrative expenses during the quarter.

Total Revenue

Sales for the reported quarter increased 44.9% to a record $327.4 million from $225.9 million in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $282.0 million by 16.1%.

Operational Highlights

Segmental revenues from North America were up 27.0% year over year. The strong performance was driven by steady customer growth due to Wesco Aircraft's growing global capabilities. It continued to focus on increased bookings, contract extensions as well as contract signing with new customers during this quarter.

The company also demonstrated strong international growth in the reported quarter. Segmental revenues at Rest of World soared 112.0% year over year driven by a solid overseas business.

Adjusted earnings before interest tax, depreciation and amortization (EBITDA) were $54.4 million in the fiscal first quarter of 2014, up 5.4% year over year.

Financial Condition

Cash and cash equivalents as of Mar 31, 2014 were $49.2 million, down from $78.7 million as of Sep 30, 2013. Long-term debt as of Mar 31, 2014 was $1110.5 million, down from $568.0 million at the end of fiscal 2013.

Guidance

The company has increased its guidance for fiscal 2014 on the back of strong financial performance, improvement in sales and quoting activity and synergies from the Hass integration.

The company raised its top-line guidance for fiscal 2014 to the range of $1.33 billion to $1.38 billion, reflecting growth of approximately 48% to 53% over fiscal 2013 results.

Wesco Aircraft's improved guidance evoked a positive market reaction with the shares gaining 4.22% to close at $21.72 yesterday.

Adjusted earnings per share are expected in the range of $1.33 to $1.38, representing an increase of 9% to 13% from the prior year.

Other Releases

Lockheed Martin Corp. ( LMT ) announced first quarter 2014 earnings of $2.87 per share, surpassing the Zacks Consensus Estimate of $2.52 by 13.9%.

Boeing Co. ( BA ) reported first quarter 2014 adjusted earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.54 by 14.3%.

Embraer SA ( ERJ ) reported first quarter 2014 adjusted earnings of 34 cents per American Depository Shares (ADS), beating the Zacks Consensus Estimate of 22 cents by 54.5%.

Zacks Rank

Wesco Aircraft has a Zacks Rank #3 (Hold).


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