Big Beat for Moog

Moog ($MOG-A) just reported earnings of 90 cents per share (the June quarter is their fiscal third). Wall Street’s consensus was for 84 cents per share. Sales rose 10% to $671 million.

Moog Inc. announced today third quarter sales of $671 million, an increase of 10% over last year’s $611 million. Net earnings of $34 million and EPS of $.75 were both lower as a result of asset write-downs totaling $.15 per share in the quarter. Excluding the effect of the write-downs, adjusted net earnings of $41 million were up 7% from last year and adjusted earnings per share of $.90 were 6% higher.

And now for guidance:

The Company modified its earnings per share guidance to $3.25 for the year ending September 2013. This includes $.15 per share in restructuring charges and $.15 per share in asset write-downs described previously. Sales are now forecast at $2.58 billion, up 5% year over year, with net earnings of $149 million.

The Company also provided its initial projections for fiscal 2014 with sales of $2.67 billion and earnings per share in a range of $3.90 to $4.10, a 23% increase at the mid-point of the range.

“This quarter had many moving parts,” said John Scannell, CEO. “Our underlying operations were strong and our restructuring efforts are paying off. We had two asset write-downs in the quarter — one in Medical and one in Industrial. In addition, we announced a strategic review of our Medical Devices segment. For the full year 2013, we are expecting our underlying operations to deliver $3.55 per share — a respectable performance given the challenges we have faced. We will have $.15 per share in restructuring and $.15 per share in asset write-downs so our bottom line for the year will be $3.25 per share. As we look forward to fiscal 2014, we believe we will see much stronger operating performance. We’re projecting a narrow range of outcomes for earnings and EPS. The midpoint would be earnings of $185 million, or $4.00 per share, a 23% increase.”

This is very good news. The Street had been expecting $3.39 per share for this year and $3.90 next year.

Moog is our #1 performer this year with a 39.5% gain YTD.

Posted by on July 26th, 2013 at 8:40 am


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