Wesco Aircraft Holdings, Inc. (WAIR) announced fourth-quarter fiscal 2014 adjusted earnings of 30 cents per share, missing the Zacks Consensus Estimate of 37 cents by 18.9%. Quarterly earnings decreased 9.1% from 33 cents a year ago primarily due to a decline in operating margins and higher interest expenses from the Haas Group Inc. acquisition.
For fiscal 2014, Wesco Aircraft’s adjusted earnings were $1.24 per share, lagging the Zacks Consensus Estimate of $1.31 by 5.3%. However, earnings per share edged up 1.6% from $1.22 a year ago.
Net Sales
In the fiscal fourth quarter, Wesco Aircraft’s net sales of $408.2 million failed to beat the Zacks Consensus Estimate of $413 million by 1.2%. On a year-over-year basis, the top line soared 74.2% primarily on the back of higher sales in the North America and Rest of World segments.
The company reported net sales of $1,355.9 million in fiscal 2014, up 50.4% from $901.6 million a year-ago.
Quarterly Operational Highlights
Wesco Aircraft incurred $288.4 million as cost of sales, up 93.2% from the prior-year figure of $149.3 million.
The company’s selling, general and administrative expenses increased 98.3% year over year to $71.6 million.
The company’s interest expenses were $9.8 million compared with $4.4 million a year ago.
Wesco Aircraft reported adjusted earnings before interest tax, depreciation and amortization (EBITDA) of $58 million, up 9.5% year over year.
Financial Condition
As of Sep 30, 2014, Wesco Aircraft had cash and cash equivalents of $104.8 million compared with $78.7 million as of Sep 30, 2013.
Long-term debt as of Sep 30, 2014 was $1,079.2 million, up from $568 million at the end of fiscal 2013.
During the fiscal 2014, cash from operating activities was $53.7 million compared with $84.8 million in the prior-year period.
Guidance
Wesco Aircraft provided its guidance for fiscal 2015 sales and earnings, and the year-over-year comparison.
The company provided its top-line guidance in the range of $1,625–$1,675 million, which reflects growth of 20%–24% over fiscal 2014 results.
Wesco Aircraft expects adjusted earnings for fiscal 2015 to be in the range of $1.30–$1.40 per share, which shows a rise of 5%–13% over fiscal 2014 earnings.
Other Peer Releases
The Boeing Company (BA) reported adjusted third-quarter 2014 earnings of $2.14 per share, beating the Zacks Consensus Estimate by 9.2%.
Lockheed Martin Corp. (LMT) posted third-quarter 2014 earnings of $2.76 per share, surpassing the Zacks Consensus Estimate of $2.72 by 1.5%.
Embraer SA’s (ERJ) adjusted third-quarter 2014 earnings of 50 cents per American Depository Share (ADS) beat the Zacks Consensus Estimate of 25 cents by 100%.
Zacks Rank
Wesco Aircraft currently has a Zacks Rank #3 (Hold).
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