Kaman (KAMN) Tops Q3 EPS by 7c, Miss on Revenues; Guides FY17 Revenues Below Consensus

Kaman (NYSE: KAMN) reported Q3 EPS of $0.69, $0.07 better than the analyst estimate of $0.62. Revenue for the quarter came in at $447 million versus the consensus estimate of $462.97 million.

2017 Outlook

Our revised 2017 outlook is as follows:

• Distribution:
  • Sales of $1,080.0 million to $1,100.0 million
  • Operating margins of 5.0% to 5.1%
  • Depreciation and amortization expense of $16.0 million

• Aerospace:
  • Sales of $730.0 million to $745.0 million
  • Operating margins of 16.3% to 16.6%, or 16.8% to 17.1% when adjusted for the $4.0 million in anticipated restructuring costs
  • Depreciation and amortization expense of $23.0 million
• Interest expense of approximately $20.0 million
• Corporate expenses of approximately $57.0 million, or approximately $55.0 million when adjusted for the $2.1 million of costs associated with the retirement of a senior executive
• Estimated annualized tax rate of approximately 37.0%
• Consolidated depreciation and amortization expense of approximately $45.0 million
• Capital expenditures of approximately $30.0 million
• Cash flows from operations in the range of $100.0 million to $130.0 million; Free Cash Flow* in the range of $70.0 million to $100.0 million
• Weighted average diluted shares outstanding of 28.5 million

GUIDANCE:

Kaman sees FY2017 revenue of $1.08-1.1 billion, versus the consensus of $1.8 billion.

Third Quarter Highlights:

• Diluted earnings per share of $0.58; Adjusted diluted earnings per share* of $0.69
• Net earnings of $16.3 million; Adjusted EBITDA* of $45.5 million, 10.2% of Net sales
• Distribution operating margin of 5.0%
• Aerospace operating margin of 17.8%, Adjusted operating margin* of 19.2%

For earnings history and earnings-related data on Kaman (KAMN) click here.

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