Moog Inc. (MOG-A) Misses Q1 EPS by 7c, Revenue Beats, Offers Outlook

Moog Inc. Reports First Quarter Results

January 28, 2022 7:57 AM EST

EAST AURORA, N.Y.--(BUSINESS WIRE)-- Moog Inc. (NYSE: MOG.A and MOG.B) announced today financial results for the quarter ended January 1, 2022.

First Quarter Highlights

Sales of $724 million were up 6% from a year ago; GAAP diluted earnings per share of $1.44; Portfolio shaping activities, primarily related to the divestiture of the NAVAIDS business, contributed a $0.33 net gain; Non-GAAP diluted adjusted earnings per share of $1.11 were in line with the companys guidance of 90 days ago; GAAP operating margins of 11.1% with adjusted operating margins of 9.1%; $157 million GAAP cash flow from operating activities; Amended the securitization facility such that certain receivables, up to $100 million, may be derecognized from the balance sheet; $90 million was derecognized as of the end of Q1; $68 million adjusted cash flow from operating activities; GAAP effective tax rate of 24.7% and adjusted effective tax rate of 24.0%; and Today announced a 4% increase in the quarterly dividend, to $0.26.

Segment Results

Aircraft Controls segment revenues in the quarter were $303 million, 6% higher year over year. Commercial aircraft revenues were $117 million, a 45% increase from a year ago. Sales to commercial OEM customers were up 47%. Commercial aftermarket sales increased 38% on repair and overhaul activity, particularly on the 787 aircraft.

Military aircraft sales were $186 million, down 10% year over year. Military OEM sales were down 9%, to $136 million, tied to lower foreign military sales and lower F-35 Joint Strike Fighter sales. Military aftermarket sales were 12% lower, on weaker sales across multiple programs.

Space and Defense segment revenues were $208 million, an increase of 10% from last year. Space sales were up 13%, to $88 million, the result of increased sales for space vehicles and avionics. Defense sales of $120 million increased 9% year over year. Sales of the RIwP® turret were very strong and offset a decrease in sales of tactical missile components.

Industrial Systems segment sales in the quarter were $213 million, up 2% from a year ago. Energy sales were up 10%, the result of strengthening oil prices and associated offshore exploration activity. Sales of simulation and test products were 10% higher, tied to test projects in China. Sales of products for industrial automation applications increased 7%, with strength seen across the core portfolio. Medical product sales were down 12% compared to a very strong quarter a year ago.

Consolidated 12-month backlog was $2.2 billion, up 14% from a year ago.

It was a solid quarter for our business, in line with our guidance of 90 days ago, said John Scannell, Chairman and CEO. The emergence of the Omicron variant made this quarter more challenging than we had projected, but we still achieved our plan. We had an exciting quarter for program successes and product announcements tied to our organic investments. Overall, business sentiment in our markets remains positive and our outlook is optimistic for the remainder of the year.

Fiscal 2022 Outlook

The Company updated its fiscal 2022 projections and adjusted figures provided 90 days ago.

Forecasted sales of $3.0 billion; Forecasted GAAP diluted earnings per share of $5.83, and adjusted diluted earnings per share of $5.50, both plus or minus $0.20; Forecasted GAAP operating margins of 10.8% and adjusted operating margins of 10.3%; Forecasted cash flow from operating activities of $338 million and adjusted cash flow from operating activities of $238 million; and Forecasted GAAP effective tax rate of 25.5% and adjusted effective tax rate of 25.4%.

In conjunction with todays release, Moog will host a conference call today beginning at 10:00 a.m. ET, which will be broadcast live over... More