Stock Monitor: Park-Ohio Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 16, 2018 / Active-Investors.com has just released a free earnings report on Wesco Aircraft Holdings, Inc. (NYSE: WAIR) ("Wesco"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=WAIR. The Company reported its first quarter fiscal 2018 operating and financial results on February 08, 2018. The Company, which is one of the world's leading distributors and providers of comprehensive supply chain management services to the global aerospace industry, reported a growth in revenues of 7%, and also provided guidance for the fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Park-Ohio Holdings Corp. (NASDAQ: PKOH), which also belongs to the Services sector as the Company Wesco Aircraft Holdings. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Wesco Aircraft Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=WAIR
Earnings Highlights and Summary
For the first quarter of the fiscal year 2018 ended December 31, 2017, Wesco's net sales increased 7.0% to $363.09 million compared to $339.37 million in Q1 FY17, primarily due to an increase in long-term contracts and growth in ad-hoc sales. The increase in contract sales primarily reflected new business revenues and higher hardware and chemical content. The ad-hoc sales growth was primarily due to an improved service performance and a growth in key customers. The Company's revenue numbers exceeded analysts' estimates by $16.24 million.
During Q1 FY18, Wesco reported a gross profit of $94.42 million compared to $89.46 million in Q1 FY17. The Company's gross margin was 26.0% in the reported quarter versus 26.4% in the prior year's same quarter. The lower gross margin primarily reflected a decline in chemical margins and a slightly negative impact from mix.
For Q1 FY18, Wesco's selling, general, and administrative expenses (SG&A) totaled $69.85 million compared to $63.20 million in Q1 FY17. The increase in SG&A was primarily due to investments made in H2 FY17 to stabilize the business and support growth, as well as higher consulting costs in Q1 FY18 associated with the Company's improvement initiatives. Wesco's SG&A as a percentage of net sales was 19.2% in the reported quarter versus 18.6% in the year earlier comparable quarter.
Wesco's income from operations totaled $24.57 million, or 6.8% of net sales, in Q1 FY18 compared to $26.3 million, or 7.7% of net sales, in Q1 FY17. The decline in operating income reflected higher SG&A, partially offset by an increase in gross profit.
For Q1 FY18, Wesco reported a net loss of $374,000, essentially break-even on a per-share basis, compared to a net income of $13.11 million, or $0.13 per diluted share, in Q1 FY17. The Company's reported quarter results included an additional tax expense of $9.1 million associated with the enactment of the Tax Cuts and Jobs Act (TCJA) in December 2017.
Wesco's adjusted net income was $14.5 million, or $0.15 per diluted share, in Q1 FY18 compared to $18.5 million, or $0.19 per diluted share, in Q1 FY17. The Company's earnings numbers beat Wall Street's estimates of $1.13 per share.
For Q1 FY18, Wesco's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) totaled $35.0 million compared to $34.3 million in Q1 FY17. The Company's adjusted EBITDA margin was 9.6% in the reported quarter compared to 10.1% in the prior year's corresponding quarter.
Cash Matters
Wesco's net cash used in operating activities totaled $29.9 million in Q1 FY18 compared to $28.1 million in Q1 FY17. The Company's free cash flow was negative $31.2 million in the reported quarter compared to a negative free cash flow of $29.4 million in the year earlier same quarter.
Outlook
For the full fiscal year 2018, Wesco is forecasting low single-digit percentage increase in net sales on a y-o-y basis, as well as a low double-digit percentage increase in adjusted EBITDA y-o-y. The Company continues to expect that it will end FY18 with an adjusted EBITDA margin run-rate of more than 10%.
Stock Performance Snapshot
March 15, 2018 - At Thursday's closing bell, Wesco Aircraft Holdings' stock was slightly up 0.52%, ending the trading session at $9.65.
Volume traded for the day: 472.47 thousand shares.
Stock performance in the last month - up 12.21%; previous three-month period - up 42.96%; past six-month period - up 10.29%; and year-to-date - up 30.41%
After yesterday's close, Wesco Aircraft Holdings' market cap was at $955.54 million.
The stock is part of the Services sector, categorized under the Industrial Equipment Wholesale industry. This sector was up 0.1% at the end of the session.
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