Curtiss-Wright (CW) Tops Q2 EPS by 16c, Beats on Revenues; Raises FY EPS Guidance

Curtiss-Wright (NYSE: CW) reported Q2 EPS of $1.13, $0.16 better than the analyst estimate of $0.97. Revenue for the quarter came in at $568 million versus the consensus estimate of $546.73 million.

Second Quarter 2017 Highlights

• Diluted earnings per share (EPS) of $1.13, ahead of expectations, and up 28% compared with the prior year;
• Net sales of $568 million, up 7%, including 5% organic growth;
• Operating income of $83 million, up 22%;
• Operating margin of 14.7%, up 190 basis points, despite 50 basis point dilution from acquisitions;
• New orders of $548 million, up 5%;
• Backlog of $2.1 billion increased 7% from December 31, 2016;
• Free cash flow of $73 million, resulting in free cash flow conversion of 144%, as defined in table below; and
• Share repurchases of approximately $14 million.

Full-Year 2017 Business Outlook

• Increasing sales guidance by $20 million to new range of $2.19 to $2.23 billion, primarily due to improved outlook in industrial markets;
• Increasing operating income guidance by $5 million, primarily due to improved industrial outlook and lower amortization estimates associated with the Teletronics Technology Corporation (TTC) acquisition;
• Increasing operating margin guidance by 10 basis points to new range of 14.7% to 14.8%;
• Increasing EPS guidance by $0.05 to new range of $4.45 to $4.55;
• Increasing quarterly dividend by 15% to fifteen cents ($0.15) per share; and
• Maintaining free cash flow guidance range of $260 million to $280 million.

GUIDANCE:

Curtiss-Wright sees FY2017 EPS of $4.45-$4.55, versus the consensus of $4.48. Curtiss-Wright sees FY2017 revenue of $2.19-2.23 billion, versus the consensus of $2.2 billion.

For earnings history and earnings-related data on Curtiss-Wright (CW) click here.

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