Wesco Aircraft Holdings (NYSE: WAIR) reported Q2 EPS of $0.23, $0.03 better than the analyst estimate of $0.20. Revenue for the quarter came in at $426.5 million versus the consensus estimate of $414.99 million.

Net sales of $426.5 million, up 9.3 percent
Net income of $12.0 million, or $0.12 per diluted share
Adjusted net income(1) of $23.2 million, or $0.23 per diluted share
Adjusted earnings before interest, taxes, depreciation and amortization(1) (EBITDA) of $46.3 million, or 10.9 percent of net sales
Net cash provided by operating activities of $26.0 million

Todd Renehan, chief executive officer, commented, “Financial results in the fiscal 2019 second quarter reflect continued improvement in most areas of the business. Sales were robust across all major product categories, as we took advantage of a growing market. Consistent with the previous quarter, we had execution challenges in EMEA; we launched a series of key initiatives in the region and remain confident in our ability to improve EMEA’s performance. Net income declined in the second quarter, primarily due to temporary costs related to Wesco 2020 and EMEA challenges; adjusted EBITDA increased year-over-year, reflecting strong sales gains in the Americas. In addition, our continued focus on inventory management led to a significant increase in cash generation in the second quarter.”

Renehan continued, “We realized additional cost savings related to Wesco 2020; through the second quarter, these savings primarily have offset investments to support our growth. Cost savings are expected to increase during the year as we move closer to our annualized pre-tax benefit target of at least $30 million during fiscal 2020. As previously mentioned, we believe fiscal 2019 will be a year of heavy investment and that the temporary costs associated with Wesco 2020 execution will decline significantly by the end of the year. While we still have a lot of work ahead of us, I’m pleased with our progress to-date.”

Fiscal 2019 Outlook

Based on sales performance in the first half of the year, the company now expects net sales in fiscal 2019 to increase at a mid-to-high single-digit percentage rate compared to fiscal 2018. The company continues to expect higher sales volume, Wesco 2020 benefits and expense leverage to drive a high-single-digit percentage increase in adjusted EBITDA in fiscal 2019.

For earnings history and earnings-related data on Wesco Aircraft Holdings (WAIR) click here.