BE Aerospace Inc. Earnings: Margins Expand, Net Income Climbs

BE Aerospace Inc. (NASDAQ:BEAV) reported net income above Wall Street’s expectations for the fourth 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 Fourth Quarter

Results: Net income for the aerospace/defense products and services company rose to $57.3 million (56 cents per share) vs. $31.2 million (31 cents per share) in the same quarter a year earlier. This marks a rise of 83.7% from the year earlier quarter.

Revenue: Rose 20.8% to $654.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: BEAV reported adjusted net income of 60 cents per share. By that measure, the company beat the mean estimate of 56 cents per share. Analysts were expecting revenue of $655.6 million.

Quoting Management: Amin J. Khoury, Chairman and Chief Executive Officer of BE Aerospace said, “I am pleased to report that our 2011 results were the best in the Company’s history. Sales, earnings, cash flow, bookings and backlog were all records.  In addition, the Company’s operating margin expanded 120 basis points to 17.1 percent (17.3 percent adjusted).  The substantial margin expansion was driven by our commercial aircraft and business jet segments which more than offset the margin drag from the consumables management segment acquisitions which we have now begun to integrate.”

Key Stats:
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 23.5%, with the biggest boost coming in the first quarter when revenue rose 29.5% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.1 percentage points to 37% from the year earlier quarter. Over that span, margins have grown on average 1.2 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 59.5% and in the second quarter, the figure rose 46.9%.

BEAV has now topped analyst estimates for the last four quarters.  It beat the mark by 3 cents in the third quarter, by 3 cents in the second quarter, and by 3 cents in the first quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 62 cents a share. The average estimate hasn’t changed from $2.23 per share for the fiscal year.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com