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Curtiss-Wright (CW) Q4 Earnings Top Estimates, Sales Miss
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Shares of Curtiss-Wright Corporation (CW - Free Report) rose 10.3% to reach $147.52 on Feb 28, reflecting investors’ optimism following its fourth-quarter results.
The company reported fourth-quarter 2021 adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.36 by 1.7%.
Moreover, the bottom line grew 5.7% on a year-over-year basis.
Excluding one-time items, the company reported GAAP earnings of $1.94 per share compared with $1.30 reported in the year-ago quarter.
For 2021, the company reported adjusted earnings of $7.34, up 11.4% from the 2020 reported figure.
CurtissWright Corporation Price, Consensus and EPS Surprise
In the quarter under review, the company’s adjusted sales of $667 million went up 2% year over year. The top line however missed the Zacks Consensus Estimate of $680 million by 3.6%.
The company reported GAAP sales of $667 million, which remained almost flat year over year.
For 2021, the company reported adjusted sales of $2.5 billion, up 7% from the 2020 reported figure.
Gross profit increased 8.3% year over year to $261.9 million. Operating income of $105.4 million improved 37.8% from $76.5 million a year ago.
Curtiss-Wright’s total backlog at the end of 2021 was $2.2 billion. New orders of $676 million increased 19% in the fourth quarter when compared with the prior-year period, driven by solid demand for the company’s commercial aerospace and naval defense products.
Segmental Performance
Aerospace & Industrial: Adjusted sales in this segment improved 8% year over year to $208 million, primarily attributable to higher general industrial market revenues driven by a continued strong rebound in demand for industrial vehicle products for on- and off-highway platforms and higher sales of sensors products and surface treatment services on narrowbody platforms. Also, higher sales of actuation products and surface treatment services on the F-35 program contributed to this segment’s top-line growth.
While adjusted operating income increased 20% to $40 million, the operating margin expanded 200 basis points (bps) to 19.5%. The upside was driven by strong absorption on higher sales and the benefits of this segment’s ongoing operational excellence initiatives.
Defense Electronics: Adjusted sales in this segment grew 10% year over year to $200 million. This uptick can be attributed to the contribution from the PacStar acquisition for tactical battlefield communications equipment within the company’s ground defense market. Also, increased sales of avionics and electronic systems on various domestic and international platforms contributed to this segment’s top-line growth.
Adjusted operating income rose 17% to $53 million while adjusted operating margin expanded 160 bps to 26.5%. The upside was driven by higher sales and a favorable mix in defense electronics.
Naval & Power: Adjusted sales in this segment dropped 7% year over year to $248 million on account of lower revenues from the Virginia-class submarine program.
Adjusted operating income declined 16% to $48 million. The operating margin contracted 210 bps to 19.3%. This deceleration was on account of lower revenues and an unfavorable mix in the power & process market.
Financial Update
Curtiss-Wright ended the fourth quarter of 2021 with cash and cash equivalents of $171 million, down from $198.2 million as of Dec 31, 2020.
Long-term debt was $1,050.6 million as of Dec 31, 2021, compared with $958.3 million as of Dec 31, 2020.
Operating cash flow totaled $387.7 million at the end of 2021 compared with $261.2 million in the prior-year period.
Adjusted free cash flow at the end of the reported quarter was $346.6 million compared with the year-ago period’s $394.2 million.
2022 Guidance
Curtiss-Wright updated its financial guidance for 2022. The company now expects adjusted earnings in the range of $8.05-$8.25 per share.
The Zacks Consensus Estimate for the company’s full-year earnings is pegged at $8.04 per share, which lies below the company’s guided range.
The company expects to generate adjusted sales in the range of $2,530-$2,580 million in 2022. The Zacks Consensus Estimate for its full-year sales is pegged at $2.55 billion, almost in line with the midpoint of the company-guided range.
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9.6%. The Zacks Consensus Estimate for GD’s 2022 earnings per share (EPS) indicates year-over-year growth of 5.3%.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2021 adjusted EPS of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 10.2%. The Zacks Consensus Estimate for RTX’s 2022 EPS indicates year-over-year growth of 12.2%.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 18%.
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Curtiss-Wright (CW) Q4 Earnings Top Estimates, Sales Miss
Shares of Curtiss-Wright Corporation (CW - Free Report) rose 10.3% to reach $147.52 on Feb 28, reflecting investors’ optimism following its fourth-quarter results.
The company reported fourth-quarter 2021 adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.36 by 1.7%.
Moreover, the bottom line grew 5.7% on a year-over-year basis.
Excluding one-time items, the company reported GAAP earnings of $1.94 per share compared with $1.30 reported in the year-ago quarter.
For 2021, the company reported adjusted earnings of $7.34, up 11.4% from the 2020 reported figure.
CurtissWright Corporation Price, Consensus and EPS Surprise
CurtissWright Corporation price-consensus-eps-surprise-chart | CurtissWright Corporation Quote
Operational Performance
In the quarter under review, the company’s adjusted sales of $667 million went up 2% year over year. The top line however missed the Zacks Consensus Estimate of $680 million by 3.6%.
The company reported GAAP sales of $667 million, which remained almost flat year over year.
For 2021, the company reported adjusted sales of $2.5 billion, up 7% from the 2020 reported figure.
Gross profit increased 8.3% year over year to $261.9 million. Operating income of $105.4 million improved 37.8% from $76.5 million a year ago.
Curtiss-Wright’s total backlog at the end of 2021 was $2.2 billion. New orders of $676 million increased 19% in the fourth quarter when compared with the prior-year period, driven by solid demand for the company’s commercial aerospace and naval defense products.
Segmental Performance
Aerospace & Industrial: Adjusted sales in this segment improved 8% year over year to $208 million, primarily attributable to higher general industrial market revenues driven by a continued strong rebound in demand for industrial vehicle products for on- and off-highway platforms and higher sales of sensors products and surface treatment services on narrowbody platforms. Also, higher sales of actuation products and surface treatment services on the F-35 program contributed to this segment’s top-line growth.
While adjusted operating income increased 20% to $40 million, the operating margin expanded 200 basis points (bps) to 19.5%. The upside was driven by strong absorption on higher sales and the benefits of this segment’s ongoing operational excellence initiatives.
Defense Electronics: Adjusted sales in this segment grew 10% year over year to $200 million. This uptick can be attributed to the contribution from the PacStar acquisition for tactical battlefield communications equipment within the company’s ground defense market. Also, increased sales of avionics and electronic systems on various domestic and international platforms contributed to this segment’s top-line growth.
Adjusted operating income rose 17% to $53 million while adjusted operating margin expanded 160 bps to 26.5%. The upside was driven by higher sales and a favorable mix in defense electronics.
Naval & Power: Adjusted sales in this segment dropped 7% year over year to $248 million on account of lower revenues from the Virginia-class submarine program.
Adjusted operating income declined 16% to $48 million. The operating margin contracted 210 bps to 19.3%. This deceleration was on account of lower revenues and an unfavorable mix in the power & process market.
Financial Update
Curtiss-Wright ended the fourth quarter of 2021 with cash and cash equivalents of $171 million, down from $198.2 million as of Dec 31, 2020.
Long-term debt was $1,050.6 million as of Dec 31, 2021, compared with $958.3 million as of Dec 31, 2020.
Operating cash flow totaled $387.7 million at the end of 2021 compared with $261.2 million in the prior-year period.
Adjusted free cash flow at the end of the reported quarter was $346.6 million compared with the year-ago period’s $394.2 million.
2022 Guidance
Curtiss-Wright updated its financial guidance for 2022. The company now expects adjusted earnings in the range of $8.05-$8.25 per share.
The Zacks Consensus Estimate for the company’s full-year earnings is pegged at $8.04 per share, which lies below the company’s guided range.
The company expects to generate adjusted sales in the range of $2,530-$2,580 million in 2022. The Zacks Consensus Estimate for its full-year sales is pegged at $2.55 billion, almost in line with the midpoint of the company-guided range.
Zacks Rank
Curtiss-Wright currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Defense Releases
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9.6%. The Zacks Consensus Estimate for GD’s 2022 earnings per share (EPS) indicates year-over-year growth of 5.3%.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2021 adjusted EPS of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 10.2%. The Zacks Consensus Estimate for RTX’s 2022 EPS indicates year-over-year growth of 12.2%.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 18%.