Yahoo Finance Curtiss-Wright (CW) Q1 Earnings Beat Estimates, Sales Rise Y/Y
Curtiss-Wright Corporation CW reported first-quarter 2023 adjusted earnings of $1.53 per share, which surpassed the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line rose 16.8% on a year-over-year basis.
Operational Performance
In the quarter under review, the company’s net sales of $631 million went up 13% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $594 million by 6.2%.
The operating income of $81 million surged 15% year over year. The adjusted operating margin expanded 20 basis points (bps) to 12.9%, driven by the favorable overhead absorption of higher revenues in all three segments.
Curtiss-Wright’s total backlog at the end of the first quarter was $2.7 billion, up 3% from Dec 31, 2022, reflecting higher demand in the aerospace & defense and commercial markets. New orders of $718 million increased 13% in the first quarter compared with the prior-year period, driven by the strong demand for defense electronics and actuation products as well as industrial valve and commercial nuclear products.
Curtiss-Wright Corporation Price, Consensus and EPS Surprise
Curtiss-Wright Corporation price-consensus-eps-surprise-chart | Curtiss-Wright Corporation Quote
Segmental Performance
Aerospace & Industrial: Sales in this segment improved 6% year over year to $202 million, primarily attributable to higher commercial aerospace market revenues. The upside in revenues was mainly due to sensor products and surface treatment services on narrowbody and widebody platforms.
Further, higher general industrial market revenues, driven by the increased sale of industrial vehicle products, fueled the sales performance of the segment and increased sales of surface treatment services.
While the operating income increased 7% to $27 million, the operating margin expanded 10 bps to 13.1%.
Defense Electronics: Sales in this segment increased 13% year over year to $162 million. This rise was due to strong growth in defense market sales.
The operating income came in line with the prior-year operating income of $23 million, while the operating margin decreased 190 bps to 14.4%. The contraction can be attributed to the favorable absorption of higher revenues.
Naval & Power: Sales in this segment increased 18% year over year to $266 million due to the favorable impact of the arresting system acquisition, increased sales to international customers and higher revenues from the Columbia-class submarine programs and CVN-81 aircraft carrier programs.
The unit’s operating income increased 24% to $41 million. The operating margin expanded 80 bps to 15.3%. This acceleration was due to the favorable absorption of higher organic revenues and a solid contribution from the arresting system acquisition.
Financial Update
CW’s cash and cash equivalents as of Mar 31, 2023 were $130.7 million compared with $256.9 million as of Dec 31, 2022.
The long-term debt was $1,229.6 million as of Mar 31, 2023 compared with $1,051.9 million as of Dec 31, 2022.
The operating cash outflow totaled $91.6 million at the end of the first quarter of 2023 compared with $124.3 million in the prior-year period.
The adjusted free cash outflow at the end of the reported quarter was $92.2 million compared with the year-ago period’s $111.9 million.
2023 Guidance
Curtiss-Wright maintained its financial guidance for 2023. The company expects adjusted earnings in the band of $8.65-$8.90. The Zacks Consensus Estimate for the company’s full-year earnings is pegged at $8.77 per share, which is in line with the midpoint of CW’s guided range.
Curtiss-Wright expects sales in the range of $2,655-$2,710 million. The Zacks Consensus Estimate for its full-year sales is pegged at $2.68 billion, in line with the midpoint of the company’s guided range.
Zacks Rank
Curtiss-Wright currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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