BE Aerospace Earnings: Here’s Why Investors Like These Results

BE Aerospace Inc. (NASDAQ:BEAV) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.34%.

BE Aerospace Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 28.99% to $0.89 in the quarter versus EPS of $0.69 in the year-earlier quarter.

Revenue: Decreased 15.34% to $650.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: BE Aerospace Inc. reported adjusted EPS income of $0.89 per share. By that measure, the company beat the mean analyst estimate of $0.85. It missed the average revenue estimate of $843.34 million.

Quoting Management: Commenting on the Company’s second quarter 2013 performance, Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace said, “Today we reported second quarter 2013 results which included record quarterly revenues, bookings, operating earnings, operating margin, net earnings, and EPS. Our revenue growth continues to be driven primarily by the strong new aircraft delivery cycle. Approximately 60 percent of second quarter revenues was driven by demand for products for new-buy aircraft. Demand for premium seating products and food and beverage preparation and storage equipment associated with robust wide body aircraft deliveries was particularly strong. In addition, orders at our consumables management segment and in our commercial aircraft spares business marked a solid upturn during the quarter as compared with the prior year period.”

Key Stats (on next page)…

Revenue decreased 22.79% from $842.2 million in the previous quarter. EPS increased 2.3% from $0.87 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.88 and has not changed. For the current year, the average estimate has moved up from a profit of $3.49 to a profit of $3.52 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)