Here's Why BE Aerospace Should Be in Your Portfolio

A one-stop shop for all of your aircraft cabin interior component needs, BE Aerospace (NAS: BEAV) seems to be cashing in on the higher demand for air travel. The company posted robust first-quarter numbers, beating Street expectations.

Let's take a look at its growth story.

In its first quarter, the company generated record high revenues of $747.3 million, a significant 25% surge over the previous year. Barring the effect of special one-time items, BE reported earnings of $0.70 per share, an impressive 43% increase over last year, comfortably beating analyst estimates of $0.62 per share and marking the company's seventh straight quarter of double-digit earnings-per-share growth.

The reason behind these robust numbers was a 21% increase in the sales of BE's commercial aircraft business, which, incidentally, accounts for around half of its total revenue.

The company caters to several airline companies that include two of the world's biggest carriers: United Continental and Delta Air Lines. With the increase in global air passenger traffic, more and more airline companies are investing in commercial jets to meet the growing demand. At the same time, several airlines are buying new fuel-efficient planes as they continue to bear the brunt of soaring jet-fuel costs. All this translates to new orders for BE Aerospace. As a result, even though the airline industry is struggling with low profitability in general, it seems to be having no impact on this company.

BE has more ways than one to make itself indispensable, too. The company's broad product offerings and customization make it attractive to airline companies such as United Continental and Delta Air Lines, both of which are planning to position themselves better for higher pricing and increased fares, as demand for air travel increases during the summer.

A trend that's here to stay
A comparison can be drawn between aircraft manufacturer Boeing's (NYS: BA) constant efforts to increase production and BE's revenue prospects. During the first quarter, Boeing was applauded for significantly increasing its production capacity, reflecting the growing market demand for commercial aircraft.

And it seems companies such as BE Aerospace are also reaping the benefits of this trend. In fact, after a stellar performance by BE all through 2011, analysts seem to have pinned their hopes on this company. BE expects to earn $2.75 per share this year, as compared to of $2.79 per share expected by analysts.

Sometime in the very near future, manufacturing companies like BE Aerospace will be able to revolutionize the way they produce aerospace equipment. You can get in on the ground floor by reading more about the companies poised to profit from this changing landscape in our free report, "The Future is Made in America." Download this exclusive copy for a limited time only.

At the time thisarticle was published Fool contributor Navjot Kaur owns no shares of any of the companies mentioned in this article. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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