Why Wesco Aircraft Shares Slid
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Wesco Aircraft Holdings were hitting turbulence today, falling as much as 11%, after reporting quarterly earnings.
So what: Revenue for Wesco, which provides support services for the aerospace industry, scooted up 10%, to $211 million, but that still missed estimates and was partly driven by its acquisition of Interfast. Adjusted EPS of $0.25 was short of estimates of $0.28, but guidance for the year was still within the expected range at $1.14 to $1.19. CEO Randy Snyder said the first quarter was "strong," and had high confidence in the yearly guidance due to a high number of bookings and new customers.
Now what: After a brief dip, shares bounced back and were only down 2% near the end of the session, so shareholders seem to be taking the earnings miss in stride. Increased bookings and new customers indicate the company is moving in the right direction, and growth outside of North America was especially strong, at 32%. Despite today's miss, nothing seems seriously awry here.
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