Moog Increases Sales but Misses Revenue Estimates

Seth Jayson, The Motley Fool
Updated

Moog (NYS: MOG.A) reported earnings on July 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q3), Moog missed estimates on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.


Margins improved across the board.

Revenue details
Moog chalked up revenue of $611.2 million. The seven analysts polled by S&P Capital IQ wanted to see sales of $625.3 million on the same basis. GAAP reported sales were 4.8% higher than the prior-year quarter's $583.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.85. The seven earnings estimates compiled by S&P Capital IQ forecast $0.85 per share. GAAP EPS of $0.85 for Q3 were 16% higher than the prior-year quarter's $0.73 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.0%, 100 basis points better than the prior-year quarter. Operating margin was 10.1%, 90 basis points better than the prior-year quarter. Net margin was 6.4%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $633.9 million. On the bottom line, the average EPS estimate is $0.92.

Next year's average estimate for revenue is $2.48 billion. The average EPS estimate is $3.33.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Moog is outperform, with an average price target of $47.00.

Over the decades, small-cap stocks like Moog have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

The article Moog Increases Sales but Misses Revenue Estimates originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement