Kaman (KAMN) Misses Q4 EPS by 13c, Miss on Revenues; Offers FY18 Fiscal Outlook

Kaman (NYSE: KAMN) reported Q4 EPS of $0.86, $0.13 worse than the analyst estimate of $0.99. Revenue for the quarter came in at $473.9 million versus the consensus estimate of $492.14 million.

Fourth Quarter Highlights:

• Net sales increased 9.4% to $473.9 million
• Net earnings of $13.8 million, 8.8% decrease from the prior year
• Adjusted EBITDA* increased 40.3% to $54.0 million, 11.4% of net sales
• Distribution operating margin of 4.4%, a 220 basis point increase from the prior year
• Aerospace operating margin of 21.4%, a 230 basis point increase from the prior year

Our 2018 outlook is as follows:

• Distribution:
  • Sales of $1,100.0 million to $1,150.0 million
  • Operating margins of 5.1% to 5.4%
  • Depreciation and amortization expense of approximately $15.0 million

• Aerospace:
  • Sales of $750.0 million to $780.0 million
  • Operating margins of 15.5% to 16.0%, or 16.2% to 16.7% when adjusted* for approximately $5.5 million in anticipated restructuring and transition costs
  • Depreciation and amortization expense of approximately $24.0 million
• Interest expense of approximately $20.0 million
• Corporate expenses of approximately $59.0 million
• Net periodic pension benefit of approximately $11.5 million
• Estimated annualized tax rate in the range of approximately 25.5% to 26.5%
• Consolidated depreciation and amortization expense of approximately $43.0 million
• Capital expenditures of approximately $35.0 million
• Cash flows from operations in the range of $185.0 million to $210.0 million; Free Cash Flow* in the range of $150.0 million to $175.0 million
• Weighted average diluted shares outstanding of 28.0 million
• For earnings history and earnings-related data on Kaman (KAMN) click here.

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