BE Aerospace Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

BE Aerospace, Inc. (NASDAQ:BEAV) reported net income above Wall Street’s expectations for the third quarter. BE Aerospace is a manufacturer of cabin interior products for commercial aircraft and business jets and a distributor of aerospace fasteners and consumables.

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BE Aerospace Earnings Cheat Sheet for the Third Quarter

Results: Net income for the aerospace/defense products and services company rose to $65.4 million (64 cents per share) vs. $41 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 59.5% from the year earlier quarter.

Revenue: Rose 28.5% to $636 million from the year earlier quarter.

Actual vs. Wall St. Expectations: BEAV beat the mean analyst estimate of 55 cents per share. Analysts were expecting revenue of $627.5 million.

Quoting Management: Commenting on the Company’s recent performance, Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace said, “Demand for our products is increasing consistent with the start of what is expected to be a very strong new aircraft delivery cycle. Our solid nine month year-to-date results include revenues up 28 percent, operating earnings up 36 percent, earnings per share up 51 percent and a free cash flow conversion ratio of 105 percent. Our nine-month operating margin of 17.3 percent, a 110 basis point improvement, was driven by substantial margin expansion in both our commercial aircraft and business jet segments which more than offset the margin drag from the recent acquisitions in the consumables segment which have not yet been integrated. As a result of our solid year-to-date results we are increasing our full-year 2011 guidance to approximately $2.20 per diluted share.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.3 percentage point to 37.4% from the year earlier quarter. Over that span, margins have grown on average 1.4 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 46.9% and in the first quarter, the figure rose 48.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by 3 cents in the first quarter, and by 7 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 25.8% to $608.9 million in the second quarter. The figure rose 29.5% in the first quarter from the year earlier and climbed 13% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the fourth quarter have not changed from 58 cents. Over the past sixty days, the average estimate for the fiscal year has reached $2.16 abs per share, a decline from $2.17.

Competitors to Watch: TransDigm Group Inc. (NYSE:TDG), CPI Aerostructures, Inc. (AMEX:CVU), Astronics Corporation (NASDAQ:ATRO), Ducommun Incorporated (NYSE:DCO), Breeze-Eastern Corporation (AMEX:BZC), Goodrich Corporation (NYSE:GR), LMI Aerospace, Inc. (NASDAQ:LMIA), and Spirit AeroSystems Hldgs., Inc. (NYSE:SPR).

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(Source: Xignite Financials)