Sparton (SPA) Misses Q1 EPS by 2c, Offers Outlook

Sparton (NYSE: SPA) reported Q1 EPS of $0.09, $0.02 worse than the analyst estimate of $0.11. Revenue for the quarter came in at $77 million versus the consensus estimate of $76.7 million.

Outlook
Cary Wood concluded, “Although the first quarter was not as strong as previous quarters, the results were as expected, reflecting certain increased SG&A costs in anticipation of our future growth as well as a number of unusual charges related to our strategic initiatives. We continue to maintain guidance that, net of acquisitions, we will achieve our 3-5% full-year revenue growth target. In October, as a continuation to our Fiscal 2010 Strategic Growth Plan, we disseminated to our employees and investors the Company’s 2020 Vision, including the three strategies that support how we will achieve that vision. First, we will continue to grow our Manufacturing & Design Services segment’s capabilities in the same regulated and demanding markets we serve today with select regional expansion. Second, we will grow our Engineered Components & Products segment by acquiring and growing companies that manufacture components and products found in our customer’s devices that we produce or could produce for them today. Third, we will apply the Sparton Business System to unlock value by deploying best practices and tools to make business improvements as well as being able to effectively & efficiently utilize our financial and human resources. By executing these strategies, we expect to profitably grow the company without overleveraging the balance sheet to $1 billion in revenue by the end of fiscal 2020.”

For earnings history and earnings-related data on Sparton (SPA) click here.

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