LMI Aerospace Earnings: Here’s Why Investors are Ambivalent Now

LMI Aerospace Inc. (NASDAQ:LMIA) 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.

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LMI Aerospace Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 9.76% to $0.37 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Rose 58.95% to $106.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LMI Aerospace Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.34. It missed the average revenue estimate of $108.2 million.

Quoting Management: “Sales of our legacy Aerostructures products and at the recently acquired Valent plants met our expectations with combined sales increasing from fourth quarter 2012 levels,” said Ronald S. Saks, Chief Executive Officer of LMI. “We anticipate growing revenue from this segment through 2013, based on both newly awarded work commencing during the year, as well as customer production rate increases scheduled later in 2013, notably for the Boeing 737 model. Revenue in the quarter included $6.9 million of tooling for a development program in which limited production is now starting. We also expect an additional $12.0 million of tooling revenue, about $9.0 million on this program, to be completed in 2013.”

Key Stats (on next page)…

Revenue increased 47.53% from $71.92 million in the previous quarter. EPS decreased 2.63% from $0.38 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.49 to a profit $0.44. For the current year, the average estimate has moved down from a profit of $2.06 to a profit of $2.03 over the last ninety days.

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