BE Aerospace Second Quarter Earnings Sneak Peek

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BE Aerospace, Inc. (NASDAQ:BEAV) will unveil its latest earnings on Tuesday, July 24, 2012. BE Aerospace is a manufacturer of cabin interior products for commercial aircraft and business jets and a distributor of aerospace fasteners and consumables.

BE Aerospace, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 68 cents per share, a rise of 25.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 67 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 68 cents during the last month. For the year, analysts are projecting net income of $2.81 per share, a rise of 23.8% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 8 cents, coming in at profit of 70 cents a share versus the estimate of net income of 62 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose 36.8% to $68.8 million (67 cents a share) from $50.3 million (49 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 24.5% to $747.3 million from $600.2 million.

Wall St. Revenue Expectations: Analysts predict a rise of 23.1% in revenue from the year-earlier quarter to $749.8 million.

Stock Price Performance: Between April 23, 2012 and July 18, 2012, the stock price fell $4.01 (-8.7%), from $46.12 to $42.11. The stock price saw one of its best stretches over the last year between June 4, 2012 and June 12, 2012, when shares rose for seven straight days, increasing 8.6% (+$3.45) over that span. It saw one of its worst periods between July 25, 2011 and August 8, 2011 when shares fell for 11 straight days, dropping 30.8% (-$12.97) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 24.9% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 59.5% in the third quarter of the last fiscal year and 83.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.76 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.77 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.9% to $672.1 million while assets rose 15.6% to $2.53 billion.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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

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