BE Aerospace Third Quarter Earnings Sneak Peek

BE Aerospace, Inc. (NASDAQ:BEAV) will unveil its latest earnings on Tuesday, October 23, 2012. BE Aerospace is a manufacturer of cabin interior products for commercial aircraft and business jets and a distributor of aerospace fasteners and consumables.

BE Aerospace, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 70 cents per share, a rise of 20.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 71 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 70 cents during the last month. Analysts are projecting profit to rise by 22.9% compared to last year’s $2.79.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of 69 cents a share versus the estimate of profit of 68 cents a share. It marked the fourth straight quarter of beating estimates.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the second quarter, profit rose 29.9% to $71.2 million (69 cents a share) from $54.8 million (54 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 26.1% to $768.1 million from $608.9 million.

Wall St. Revenue Expectations: Analysts predict a rise of 20.3% in revenue from the year-earlier quarter to $765.1 million.

Stock Price Performance: Between August 21, 2012 and October 17, 2012, the stock price had risen $3.79 (9.3%), from $40.61 to $44.40. The stock price saw one of its best stretches over the last year between June 4, 2012 and June 12, 2012, when shares rose for seven straight days, increasing 8.6% (+$3.45) over that span. It saw one of its worst periods between July 19, 2012 and July 27, 2012 when shares fell for seven straight days, dropping 10.2% (-$4.39) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 25% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 83.7% in the fourth quarter of the last fiscal year and 36.8% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.75 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.76 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.6% to $696.2 million while assets rose 3.3% to $2.61 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Is Coca-Cola’s Stock a Buy After Earnings?

College Debt Bubble Update: Apollo Comes Back Down to Earth

Are P&G Shares Attractive Now?

More from The Cheat Sheet