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Wesco Aircraft (WAIR) Lags Q1 Earnings, Revenues Fall Y/Y

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Wesco Aircraft Holdings, Inc.WAIR 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.

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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 COL 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 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 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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