BE Aerospace Earnings: Profits GROW by Double Digits For Fifth Straight Quarter

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

BE Aerospace Inc. (NASDAQ:BEAV) reported higher profit for the second quarter as revenue showed growth. BE Aerospace is a manufacturer of cabin interior products for commercial aircraft and business jets and a distributor of aerospace fasteners and consumables.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

BE Aerospace Inc. Earnings Cheat Sheet

Results: Net income for BE Aerospace Inc. rose to $72.1 million (69 cents per share) vs. $54.8 million (54 cents per share) in the same quarter a year earlier. This marks a rise of 31.6% from the year-earlier quarter.

Revenue: Rose 26.1% to $768.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: BE Aerospace Inc. beat the mean analyst estimate of 68 cents per share. It beat the average revenue estimate of $749.8 million.

Quoting Management: Commenting on the Company’s outlook, Mr. Khoury stated, “We are confirming our 2012 full year guidance of $2.75 per diluted share in spite of the approximately $0.13 per share interest expense drag on earnings resulting from our first quarter 2012 $500 million senior notes issuance. The third quarter of 2012 senior notes issuance and tender (exclusive of a one-time charge of approximately $0.55 per share for debt prepayment expense) is expected to be approximately neutral to 2012 EPS. The $2.75 EPS guidance represents earnings per share growth of approximately 23 percent (38 percent on a comparable interest expense and comparable tax rate basis). Our total backlog, both booked and awarded but unbooked, of approximately $8.1 billion, our expectation of significantly higher levels of wide-body aircraft deliveries, the expectation for continued growth in global passenger travel, and the attendant increases in capacity all provide a solid foundation for strong revenue and earnings growth.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 25.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 28.5% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 36.8% and in the fourth quarter of the last fiscal year, the figure rose 83.7%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 8 cents in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 72 cents per share to 71 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $2.79 a share to $2.81 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Hot Additional Stories:

The Dow is NOT Lovin’ McDonald’s Right Now>>

SILVER: A Metal of Sunken Treasure and Champions>>

Will New Apple Products PUMP UP Shares?

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business